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?
The Town of South Bruce Peninsula has not yet determined a rate yet, but municipalities in Ontario who have implemented a MAT are collecting at a rate of 4%. That tax would be payable on 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.
Will the MAT only apply to hotel and motel rooms in South Bruce Peninsula?
Town Council still needs to pass a by-law which will determine if and how the MAT will be implemented, and what types of accommodators would be required to collect it.
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.
