The Town of Essex might be getting a municipal accommodation tax to support local tourism.
Seventy Ontario municipalities have adopted a similar tax, and a presentation going before town councillors on Monday night suggests it could reduce reliance on the residential tax base.
Huntsville used its municipal accommodation tax to fund streetscaping downtown, while Stratford used its tax revenue to pay for the $45-million Tom Paterson Theatre.
Typically, the tax is between 4 and 6 per cent. The proposal before Essex's town councillors suggests imposing it on visitors who are staying 29 days or less.
The town will decide at a later date if it, Tourism Windsor Essex Pelee Island, or a third party would collect the revenue.
Essex would split the revenue with Tourism Windsor Essex Pelee Island 50-50.
At four per cent, TWEPI and the town would each collect $98,000 annually. At five per cent, that moves up to $122,500 each, and at six per cent, they would receive $147,000.
If councillors approve the tax, the town will conduct a feasibility study next. After that, it would engage stakeholders and the public for their feedback, evaluate the collection model, and draft the policy and bylaw. The tax could be in place for March 2026.