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, 2018.
Hotels and individuals offering short-term rentals must pay a four per cent (4%) Municipal Accommodation Tax (MAT).
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 does not apply to the following accommodations:
Interest and penalties apply on any overdue MAT payment at a monthly rate of 1.25 per cent from the first day after the tax payment is due. After that time, interest will apply each month on the principal amount owing during the default period at an annual rate of 15 per cent (15%).
A non-sufficient funds (NSF) charge of $40 will be applied to all MAT payment not honoured by a financial institution due to insufficient funds.