UPDATE: City Council Approves 4% Accomodation Tax

City Council has approved a mandatory four per cent accommodation tax.

The tax will apply to hotels, motels and bed and breakfasts stays of less than 30 days.

Short-term rentals, like Air B&B, would be exempt, but city staff are recommending that the tax bylaw be amended in the fall to include them as well.

The new tax, which expected to collect almost $3-million annually, will take effect August 1.

$2-million of that money will be used for tourism marketing and promotion, and the rest will be invested into tourism product development, and major event attraction.

The new accommodation tax replaces the voluntary levy created by Kingston Accommodation Partners in 2004.