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Kapuskasing Looking Into New Hotel Tax

Kapuskasing is looking into the possibility of putting a new municipal power to use when it comes to hotels.

At council members of the town discussed the Municipal Transient Accommodation Tax, or better known as Hotel Tax and whether or not to implement it.

Mayor Alan Spacek says the 2017 provincial budget gave power to single-tier and lower-tier municipalities to apply a new sales tax to the current 13 per cent Harmonized Sales Tax or HST.

Spacek says the positive outcome for municipalities and hotels is the pooling of funds towards tourism.

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He also says other communities have used it successfully at the end of the day the hotels have a big say in how the money is spent.

The Greater Toronto Hotel Association has been heavily opposed to the new sales tax and has stated in the past year that imposing this tax with no cap has the potential to raise hotel room taxes to a new high.

Meanwhile, fellow local municipalities such as Hearst and Cochrane are also considering implementing the hotel tax, something Sudbury, Kenora and Thunder Bay have already done.

In the end he says council has opted to first reach out to major hotel owners within the area to sit down and chat about the structure of implementing such a tax before moving forward.

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