located in the same storey as a dwelling unit.' This requirement recognizes that conflicts arise in buildings that contain both hotels and residential uses and addresses them by requiring these uses to be on separate floors.
The By-law does not restrict the number of days a residence can be rented.
Short-term rentals In condominiums and rental units
There are additional considerations regarding whether short-term rentals are permitted in condominiums and rented units. The Condominium Act authorizes condominium boards to set bylaws. rules and restrictions, and a number of condo boards In Toronto have enacted rules prohibiting units from being rented for short-periods.
The Residential Tenancies Act (RTA) states that tenants may sublet a rental unit with the consent of the landlord (part VI. 95 - 104), though subletting is not a defined term in the RTA. Owners of rental buildings do not require approval under the RTA to convert a unit from a long-term to a shod-term rental.
Tax requirements
The City of Toronto collects property taxes from residents and businesses, subject to certain exemptions. The tax classification of a property is established by the Municipal ‘' Property Assessment Corporation (MPAC), based on the Assessment Act and other relevant regulations. Tax classifications are based on the predominant use of a property. Generally, hotels and motels pay commercial property taxes while bed breakfast operators pay residential property taxes. Most short-term rental operators are likely paying residential property taxes. There is no tax classification defined under regulation that applies specifically to short-term rentals.
The City of Toronto does not collect taxes beyond property taxes from hotels, bed & breakfasts and other operators of short-term rentals. The City of Toronto Act 2006, prohibits the City from levying a lodging or hotel tax. Under an arrangement with the Great Toronto Hotel Association (GTHA), certain hotels that are members of GTHA voluntarily contribute up to 3% of room revenues to a destination marketing program. which is administered by the GTHA and remitted to Tourism Toronto. The destination marketing program is used to support regional tourism marketing. Participating hotels either include the fee on the customer's bill or make the contribution from general accounts. Short-term rental operators and platforms are not GTHA members and do not voluntarily contribute to the destination marketing program.
As part of the five-year review of the City of Toronto Act, 2006, and as part of the revenue strategy developed under the City's Long-Term Fiscal Plan, the City has requested the Province to provide the City with the legislative authority to implement a hotel tax. If a hotel tax were implemented, operators of short-term rentals, along with hotels, motels and bed & breakfasts, could be required to pay this tax. Staff are currently conducting further analyses on the City's revenue options, and will report on the long-term fiscal plan, including information about a potential hotel tax, to Executive Committee in December 2016.