Background/Legislation
On Thursday November 23, 2017, the Province of Ontario issued the Transient Accommodation Regulation 435/17, which came into force December 1, 2017 and provides the necessary provisions for municipalities across Ontario to implement a Municipal Accommodation Tax (MAT)
On March 16, 2021 South Bruce Peninsula Council passed By-Law 30-2021, approving the implementation of a four percent (4%) mandatory MAT applicable on all short-term accommodations under 30 days.
The MAT will come into effect on January 1, 2022 and applies to all accommodation sold for a continuous period of less than 30 days including:
- a room or suite of rooms containing one or more beds or cots, whether in a hotel, motel, boarding, lodging, or rooming house, bed and breakfast or other establishment providing lodging
- in a tent, trailer, vehicle, recreational vehicle or other structure on a campsite or in a campground, regardless of whether the tent/trailer/vehicle/recreational vehicle/structure is brought to the campsite/campground by the patron or if it is existing on the campsite or in the campground
Forms
Frequently Asked Questions
| What is a Municipal Accommodation Tax? |
| A Municipal Accommodation Tax (MAT) is a fee levied on short-term and overnight accommodations. It is paid by visitors when they book a room with a local accommodation provider |
| How much is the tax? |
| 4% of the purchase price of the accommodation only (the room rate). It would not apply to other associated services and amenities, like meeting room rentals, food and beverages, room services, Internet and phone charges. |
| Are other municipalities collecting a MAT? |
| Yes. More than a dozen towns and cities in Ontario have a Municipal Accommodation Tax, including Ottawa, Toronto, London, Waterloo Region, Windsor, Oakville, Kingston, Barrie and Sudbury. |
| Is the MAT optional? |
|
No. The MAT is a mandatory fee, and must be paid to the accommodation provider when paying for the booking. The fees collected by accommodation providers are then remitted to the municipality. |
| Under what authority does a municipality collect the MAT? |
| The Province of Ontario gave municipalities the ability to levy a Municipal Accommodation Tax through the Municipal Act, Ontario Regulation 435/17: Transient Accommodation Tax. |
| Where would the money go? |
| At least 50% of the net revenue from the MAT must be shared with an eligible not-for-profit tourism entity, and reinvested in tourism promotion. The remainder would be used for municipal purposes, at the discretion of Council. An eligible entity and where the revenue will be used has yet to be formally determined by Council however, Council has discussed using the money to fund the Community Hub project. |
| Correspondence and New Tax Poster for Accommodators |
| Municipal Accommodation Tax Presentations |
| Short-Term Accommodation Licencing |
| Visit the dedicated Short-Term Accommodation Licencing webpage for more information. |
