Rates & Exemptions
The Province of Ontario enacted the Transient Accommodation Regulation 436/17, which came into effect December 1, 2017 and provides the necessary provisions for municipalities across Ontario to implement a Municipal Accommodation Tax (MAT). City Council approved a mandatory MAT on January 31.
The Municipal Accommodation Tax (MAT) will be charged at the rate of four per cent on hotels effective April 1, and short-term rentals pending the enactment of the short-term rental by-law.
MAT is payable on the purchase price of the room portion of rental accommodations for stays of four hours or more. Other services, including meeting room rentals, food and beverage, room services, internet and phone charges, are excluded from the tax provided they are itemized separately on the bill.
HST is also payable on the MAT portion.
The Municipal Accommodation Tax is not applicable to the following accommodations:
- Treatment centres that receive provincial aid under the Ministry of Community and Social Services Act
- Summer camps where overnight stays are part of the programming
- Houses of refuge or lodging for the reformation of offenders
- Charitable, non-profit philanthropic corporations organized as shelters for the relief of the poor or for emergency
- Hotel or motel rooms used by the City or its agents for shelter accommodation purposes
- Condo guest suites/rooms
- Tents or trailer sites supplied by a campground, tourist camp or trailer park;
- Accommodations supplied by employers to their employees in premises operated by the employer
- Any accommodation purchased by a person or entity listed in s. 268 of the City of Toronto Act, 2006
Interest and Penalties
Interest and penalties will apply on any overdue remittance at a monthly rate of 1.25 per cent from the first day after the tax remittance is due and interest will apply each month thereafter on the principal amount owing during such time as the default continues (at a rate of 15 per cent per annum).
A non-sufficient funds (NSF) charge of $40 will be applied to all remittances which are not honoured by the financial institution on which it is drawn due to insufficient funds.