STR: A Level Playfield & Fairness

A Fair Approach to Short-Term Rentals and the Municipal Accommodation Tax

Short-term rentals have become an important part of Midland’s tourism economy. They provide visitors with more choices, bring people into our community, and support local restaurants, shops, attractions and other businesses.

As we consider how short-term rentals fit within our community, I believe we need to start with a simple principle: fairness.

A Level Playing Field for Visitor Accommodation

Hotels and motels in Midland already collect the Municipal Accommodation Tax (MAT) from their guests.

The MAT is not simply another source of general taxation. The MAT revenues are directed toward promoting Midland as a destination, strengthening tourism and encouraging people to visit our community. In the absence of these funds, the promotion would either not happen, or the costs would be added to the property taxes.

Short-term rentals participate in that same tourism economy.

Their guests visit our downtown, eat in our restaurants, shop in our stores, attend local events and enjoy everything Midland and the surrounding area have to offer. STR operators also benefit when tourism promotion brings more visitors to our community.

For that reason, I believe there is a reasonable question we need to answer:

If hotels, motels and short-term rentals are all providing paid accommodation to visitors and benefiting from the same tourism economy, should they not be treated consistently when it comes to the Municipal Accommodation Tax?

For me, this is about creating a level playing field, not choosing one type of accommodation over another.

Regulation Should Be Proportionate

I also understand why STR owners are concerned about regulation.

Across Ontario, municipalities have taken very different approaches to short-term rentals. Some have implemented extensive licensing requirements, inspections and other regulatory measures.

I do not believe Midland needs to begin there.

The approach I support is intentionally light-touch.

Owners would be required to register their STR, provide the necessary information, attest that they are meeting the applicable safety standards and requirements and ensure there is someone who can respond within a reasonable period if a legitimate concern arises.

The objective isn’t to create unnecessary inspections or layers of bureaucracy.

Most STR owners operate responsibly. Our policy should recognize that.

At the same time, residents deserve to know that when a problem does occur, there is a clear and effective way for it to be addressed.

Registration Shouldn’t Be a Revenue Generator

There would be a fee associated with mandatory registration. I believe that fee should be reasonable and connected to the actual cost of administering the program.

Registration should not become another revenue-generating exercise for the Town.

There is an important distinction between the two:

The registration fee supports administration of the STR program. The Municipal Accommodation Tax supports our tourism economy and destination promotion.

Keeping those purposes clear is important.

Supporting Tourism Together

This conversation should not become hotels versus short-term rentals, residents versus STR owners, or the Town versus property owners.

We all benefit when Midland has a healthy, well-managed tourism sector.

Hotels and motels have an important role. Short-term rentals have an important role. Local businesses have an important role. And residents have a right to expect reasonable protections in their neighbourhoods.

Good policy should balance all of those interests.

My goal is straightforward: consistent treatment for businesses providing visitor accommodation, reasonable expectations for operators, effective tools when genuine problems arise, and as little unnecessary regulation as possible.

We can support tourism without creating excessive bureaucracy.

We can protect neighbourhoods without treating responsible STR owners as the problem.

And we can ask everyone who benefits from Midland’s visitor economy to contribute fairly to promoting and strengthening it.

That is the balanced approach I believe Midland should pursue.

Please take the town survey about the STR program options by clicking here. Your opinions matter. https://www.midland.ca/STRAbylaw