Municipal Accommodation Tax

The MAT (Municipal Accommodation Tax) is a tax on the purchase of accommodations at hotels and motels, including those sold online, consistent with numerous other jurisdictions in Ontario. The MAT is applicable to all room rental accommodations of continuous stays of 30 days or less. All guest invoices will include a separate line identifying “Municipal Accommodation Tax." If the business is an HST registrant, HST is also payable on the MAT portion. Meeting room rentals, food and beverage, room services, internet and phone charges are all excluded from the tax but must be itemized separately.

The Town of Midland has designated the Ontario Restaurant Hotel and Motel Association (ORHMA) as its agent to collect MAT from Accommodation Providers and remit it to the Town of Midland. To register a hotel or change an existing registration, please contact ORHMA.

• Email: mat@orhma.com
• Phone: 905-361-0268

Section 400.1 of the Municipal Act, 2001, S. O. 2001, c.25, provides that the Council of a municipality may pass by-laws imposing a tax in respect of the purchase of transient accommodation within the municipality. Amendments were introduced as part of the 2017 Provincial Budget and received Royal Assent on May 17, 2017.

Ontario Regulation 435/17: Transient Accommodation Tax under the jurisdiction of the Municipal Act, 2001 came into effect December 1, 2017, allowing municipalities to levy a Municipal Accommodation Tax.

The Municipal Accommodation Tax imposed under this By-law does not apply to accommodation provided by:

1. The Crown, every agency of the Crown in right of Ontario and every authority, board, commission, corporation, office or organization of persons a majority of whose directors, members or officers are appointed or chosen by or under the authority of the Lieutenant Governor in Council or a member of the Executive Council;
2. Every board as defined in subsection 1(1) of the Education Act;
3. Every university in Ontario and every college of applied arts and technology and post-secondary institution whether or not affiliated with a university, the enrolments of which are counted for purposes of calculating operating grants entitlements from the Crown;
4. Every hospital referred to in the list of hospitals and their grades and classifications maintained by the Minister of Health and Long-Term Care under the Public Hospitals Act and every private hospital operated under the authority of a license issued under the Private Hospitals Act;
5. Every long-term care home as defined in subsection 2(1) of the Fixing Long-Term Care Act, 2021 and hospices;
6. A hotel or motel used by The County or its agents for shelter purposes;
7. A treatment center that receives private funding, or provincial aid under the Ministry of Community and Social Services Act;
8. A house of refuge, or lodging for the reformation of offenders;
9. A charitable, non-profit philanthropic corporation organized as shelters for the relief of the poor or for emergency;
10. A tent or trailer site supplied by a campground, tourist camp or trailer park;
11. Every boat or water vessel moored at a marina;
12. Employers to their employees in premises operated by the employer; and
13. A hospitality room in an establishment that may or may not contain a bed and is used for displaying merchandise, holding materials, or entertaining.

View the complete Municipal Accommodation Tax By-Law 2023-56

For payment remittance and reporting, ORHMA provides Accommodation Providers with an online “MAT Reporting Tool” that calculates MAT owing. Required data:

• Name of the Property
• Property MAT contact person name, email and phone
• Contact information of Manager, Accountant and Owner
• Room nights available
• Room nights occupied
• Rooms Revenue
• Rooms Revenue with Exemption/reasons

For MAT reporting tool access and further information on how to remit payments, contact ORHMA by email mat@orhma.com or phone 905-361-0268

Interest applies on any overdue MAT payment at a monthly rate of 1.25 percent from the first day after the tax payment is due, up to and including the date on which the tax is paid in full.

Any unpaid MAT, penalties and interest due may be added to the tax roll; it may become a lien against the property.

The MAT is subject to HST. Therefore, you need to charge HST on MAT, and you will need to remit this and your other HST payments to the Canada Revenue Agency.

Sample calculation of the MAT and HST:

• Total room charge/rate: $100.00
• HST 13 percent on room: $13.00
• MAT 4 percent: $4.00
• HST 13 percent on MAT:  $0.52
• Total: $117.52

MAT is a mandatory charge that is included in the accommodation payment at the time of booking with the accommodation provider.

No. The MAT is not a business tax nor a resident tax. This tax is paid by guests making accommodation bookings. The Province of Ontario created the MAT in 2017 as a vehicle to provide continued investment in tourism without a tax burden on local businesses or residents.

Tourism is one of Midland’s economic pillars and is a significant source of employment in our region. The MAT will further enable the Town of Midland’s ability to invest in tourism marketing and promotions, product development, as well as tourism and cultural programs, activities and infrastructure.