Municipal Accommodation Tax
The Province of Ontario enacted the Transient Accommodation Regulation 436/17 on December 1, 2017, which provides the necessary provisions for municipalities across Ontario to implement a Municipal Accommodation Tax (MAT).
On October 18, 2023 The Corporation of the Town of Midland approved By-law 2023-56, establishing a mandatory MAT to be collected. Collaboratively developed with key stakeholders, the implementation of the tax will be in stages over three years commencing on February 1, 2024. In 2024, the MAT will be set at 2.5%, the second year at 3.5%, and in 2026 and subsequent years, the MAT will be 4%.
The Corporation of the Town of Midland develops and hosts significant tourism festivals and events that positively impact the local economy. The MAT provides the Town of Midland with funding for destination marketing, tourism development, and related initiatives. Check out our Festivals and Events page as well as our calendar for details on our exciting and family-friendly events.
The MAT 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.
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:
a) 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;
b) Every board as defined in subsection 1(1) of the Education Act;
c) 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;
d) 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;
e) Every long-term care home as defined in subsection 2(1) of the Fixing Long-Term Care Act, 2021 and hospices;
f) A hotel or motel used by The County or its agents for shelter purposes;
g) A treatment center that receives private funding, or provincial aid under the Ministry of Community and Social Services Act;
h) A house of refuge, or lodging for the reformation of offenders;
i) A charitable, non-profit philanthropic corporation organized as shelters for the relief of the poor or for emergency;
j) A tent or trailer site supplied by a campground, tourist camp or trailer park;
k) Every boat or water vessel moored at a marina;
l) Employers to their employees in premises operated by the employer; and
m) A hospitality room in an establishment that may or may not contain a bed and is used for displaying merchandise, holding materials, or entertaining.
By-law 2023-56 Municipal Accommodation Tax
|To view the complete Municipal Accommodation Tax By-law #2023-56, please click here.