Sudbury's hotel tax took effect Sept. 1, proceeds go to city infrastructure.

The City of Greater Sudbury's Municipal Accommodation Tax took effect Sept. 1.

The four per cent tax will apply to hotels, motels, bed and breakfasts, online travel sites and short-term home rentals, such as those sold through AirBNB, within the municipality.

The provincial government granted municipalities the authority to implement a tax on transient accommodation in its 2017 budget. Greater Sudbury council approved the tax at its July 10 meeting.

The tax should raise about $425,000 for the balance of 2018. Next year, the city should rake in $1.7 million from the city's 2,000 hotel rooms.

In an Aug. 31 news release, the city said the money generated will go into municipal infrastructure developments...