The City of Elliot Lake will not be implementing a four percent accommodation tax in the immediate future.
Councillor Tom Turner tabled a motion to impose the tax on local hotels, motels, lodges or bed and breakfasts to promote local tourism.
He says the Ontario Municipal Act was amended in October 2017 allowing municipalities to do so while stipulating 50 percent of the proceeds must go to a not-for-profit corporation to promote tourism.
He believes the city could bring in between $150,000 to $200,000 annually with the Ontario Hotel, Motel and Restaurant Association collecting the tax for a fee of $700 a year.
However, several councillors don’t believe the tax should be imposed and are not sure it would benefit local businesses, so the matter has been deferred for further investigation by the Elliot Lake Economic Development Advisory Committee.