Summary of Recommendations

• Property Tax
  • ORHMA is advocating strongly for annual reassessments to promptly capture economic shifts and ensure equitable tax distribution. Despite these challenges, ORHMA remains committed to advocating for policy reforms, aiming to influence changes ahead of any potential election-related delays.
  • Key recommendations include:
  1. Implementing caps on tax increases
  2. Reducing the Business Education Tax
  3. Enhancing transparency throughout the assessment process
• Business Education Tax
  • The Province of Ontario is in a position to support investment and be more competitive through a reduction in the Business Education Tax.
• Municipal Accommodation Tax (MAT) - Credit Card Processing Fees
  • ORHMA has recommended uniform distribution of funds to support tourism promotion and legislative amendments to standardize rate changes. These proposals are currently under Ministry of Finance review, with ongoing consultations involving industry stakeholders like TIAO and the Ministry of Municipal Affairs and Housing aimed at shaping equitable policies moving forward.
  • A hotel that participates in the MAT should be able to retain the credit card processing fee charged on the MAT amount by the credit card companies. This is a processing fee that hotels currently absorb, and its impact on costs is significant.
• Employer Health Tax (EHT)
  • Increase the EHT threshold to a minimum $2 million to support small business sustainment and growth.
• ORHMA fighting Restaurant Inflation
  • While many in hospitality have recovered in this post-pandemic era, many more are struggling. Namely, the slim-margin restaurant sector is hurting. ORHMA along with other business organizations from across Canada lobbied for an extension to the CEBA loan extension, but we were not successful. Inflation is significantly devasting financial business health and is even impacting operational services. ORHMA continues to engage with the Provincial government for support. View the response from the Minister of Finance, Peter Bethlenfalvy, to our recommendations. We continue to press & expand on these support tools by way of the upcoming 2024 Provincial Budget.
• Permit OLG Products in Hospitality
  • Policy approval for:
    • Offering Keno and Retail Sports betting in licensed establishments
    • Self-attestation on age verification for Keno purchases and transactions (may require regulatory amendment)
    • Amendments to the AGCO Lottery Standards to allow sales of Retail Sports on self-serve terminals
    • Policy and regulatory approvals could be achieved through the 2024 Provincial Budget process.
• Energy Savings Program
  • With the increasing costs of electricity and natural gas, many hospitality establishments are facing much larger energy bills. To alleviate these pressures, ORHMA has recommended the implementation of an energy savings program tailored to the hospitality sector. This program aims to mitigate peak energy expenses and promote sustainable practices within the industry.
  • Currently, discussions with the Ministry of Small Business and Ministry of Red Tape Reduction are ongoing as we advocate for supportive measures that enhance operational efficiency and financial sustainability for Ontario's hospitality businesses.