Council has requested that staff further review the implementation of a Municipal Accommodation Tax (MAT), which is applied to visitor accommodations. The Town of Cobourg is looking to gain feedback on the implementation of a MAT as a tool to support local tourism development, enhance visitor services, and strengthen our community’s economic vitality.

As a member of our tourism, cultural or business community, we are looking for your feedback to help inform our report back to Council regarding next steps. Your feedback will help guide municipal decision making and ensure that any approach to a MAT is informed, practical, and reflective of the community.

Please take a few minutes to review and submit the below survey, by February 1, 2026. Thank you for sharing your insights.

The Town of Cobourg has already reached out to accommodations to gather their feedback. The Town is looking for input from our business and tourism community through the survey below.

What is a MAT?
A Municipal Accommodation Tax (MAT) is a tax paid by visitors on short term overnight accommodations (i.e. hotels) and remitted to the municipality. At least 50% of the net revenue is directed to a destination marketing organization with a mandate to promote tourism and marketing within the municipal boundaries. The other 50% can be used by the municipality for investments to enhance tourism, community amenities, or other municipal purposes.

There is no direct effect to existing residents of the community as the MAT would be applied only on short-term lodging and is geared towards visitor lodging.

Many municipalities in Ontario have established a MAT ranging from large cities to municipalities similar in size—or smaller—than Cobourg. Examples include Oshawa, Peterborough, Wilmot, Toronto, Belleville, Brockville, Cornwall, Kingston, and many others.

Who would benefit from the Tax?
Tourism is an important employment and economic driver in the Town of Cobourg. The MAT would enable the Town to increase investment in tourism marketing and tourism-related services without increasing the burden on local taxpayers.

What would the MAT be used for?
Funds raised will be used to increase investment to support the local tourism industry. This includes investment in tourism-related infrastructure, enhanced tourism marketing and promotion and other initiatives identified through Town strategies.

50% of the funds will be retained by the Town to be used at Council’s discretion based on the Town’s Use of MAT Funds Policy to be implemented at a later date.

The remaining 50% will be provided to an eligible tourism entity through an established Municipal Service Corporation (MSC) with an independent board of Directors to promote the entire Town of Cobourg community as the Town’s Destination Marketing Organization. The MSC’s tourism promotion activities will be driven by the implementation of the Town’s Tourism Strategy which would be developed for the Town.