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Municipal Accommodation Tax (MAT)

Municipal Accommodation Tax (MAT) is a fee or tax levied on short-term and overnight accommodation. This includes hotels, motels, and short-term rentals, including Air BnB, bed and breakfast, as well as campgrounds. The maximum fee is four (4) percent.

In December of 2023, Owen Sound City Council approved By-law 2023-127, establishing a Municipal Accommodation Tax (MAT) Bylaw. The MAT provides the City of Owen Sound with funding for destination marketing and tourism as well as placemaking-type initiatives.

Effective March 1, 2024, a four percent (4%) charge will be collected on the purchase of accommodations at hotels, motels, Air Bnbs, bed and breakfasts and campgrounds on stays of 28 days or less.

Frequently Asked Questions

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

No. The MAT is not a business tax nor a resident tax. This tax is paid by guests making accommodation bookings at Owen Sound-based hotels, motels, short-term rentals, and bed and breakfasts. 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 a significant employment and economic driver.  MAT enables the City of Owen Sound to invest in destination marketing and tourism development initiatives, including hosting tourism festivals and events, without contributions from local taxpayers.

A four percent Municipal Accommodation Tax (MAT) across Owen Sound applies to:

  • hotels (including full-service, limited-service, and small hotels)
  • motels
  • condo hotels
  • the portion of a multi-use complex that provides transient accommodation.

As a registered hotel, motel or short-term rental operator, you are required to collect and remit a four percent MAT on all room rentals. The MAT is applied on all room rental accommodations of four hours or more and continuous stays of 28 nights or less.

The MAT is applied on all room rental accommodations of four hours or more and continuous stays of 28 nights or less. 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.

All hotel, motel and bed & breakfast guest invoices will include a separate line for “Municipal Accommodation Tax” as of March 1, 2024.  The four percent (4%) tax applies only to the room cost portion of overnight accommodation and excludes costs from other services, including meeting room rentals, parking, food and beverage, room services, internet and phone charges, provided they are itemized separately on the bill.

The Municipal Accommodation Tax does not apply to the following accommodations:

  • Hotel, motel, and bed & breakfast rooms rented for more than 29 consecutive nights
  • Hospitals
  • Long-term care homes, as defined in subsection 2(1) of the Long-Term Care Homes Act, 2007, retirement homes and hospices
  • Treatment centres that receive provincial aid under the Ministry of Community and Social Services Act
  • Charitable, non-profit philanthropic corporations organized as shelters for the relief of the poor or for emergency
  • Accommodations that are provided on a property owned by a School Board as defined in the Education Act.
  • Lodgings provided to students by a university, college or post-secondary.
  • Complimentary Rooms supplied by employers to their employees on premises operated by the employer.
  • House of refuge, or lodging for the reformation of offenders
  • Summer camps where overnight accommodation is part of the programming

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 city. 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.

On March 11, 2022, Owen Sound’s Community Development, Tourism and Culture Advisory Committee moved the motion:


"THAT in consideration of Staff Report CS-22-027(External link) respecting Municipal Accommodation Tax, the Community Development, Tourism and Culture Advisory Committee recommends that City Council request staff to initiate the process outlined in table 1 in this report starting with a consultation with hotel/motel operators, short term accommodators and stakeholders."

The City held two information sessions regarding MAT on April 25, 2023, in the Bay Room at the Harry Lumley Bayshore Community Centre.

Owen Sound City Council approved By-law 2023-127, establishing a mandatory MAT to be collected as of March 1, 2024.

Hotel, Motel, Short-term Rental and Bed and Breakfast Operators

A four percent Municipal Accommodation Tax (MAT) across Owen Sound applies to:

  • hotels (including full-service, limited-service, and small hotels)
  • motels
  • short-term rentals
  • bed and breakfast establishments

Short-term rentals (STRs) in the City of Owen Sound are defined as all or part of a legally established dwelling that operates or offers a place of temporary residence, lodging or occupancy by way of a rental agreement or similar commercial transaction for a period of twenty-eight (28) consecutive nights or less and, for greater clarity, includes bed and breakfasts.

As a registered operator, you are required to collect and remit a four percent MAT on all room rentals. The MAT is applied on all room rental accommodations of four hours or more and continuous stays of 28 nights or less.

MAT is only applied to the cost of a room used for accommodation. MAT is not applicable when a room that may or may not contain a bed is being used for displaying merchandise, meetings or entertainment and not being used for accommodation.

MAT is not charged on other hotel services such as meeting room rentals, parking, food and beverage, room services, internet and phone charges, provided they are itemized separately on the bill.

For more information about Short-term Rentals in the City of Owen Sound, please click the button below.

The City of Owen Sound has designated the Ontario Restaurant Hotel Motel Association (ORHMA) as its agent to collect MAT from Accommodation Providers and remit it to the City. 

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

MAT Reporting Tool Access

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

MAT reports are due monthly for hotels and motels, and quarterly for short-term rental and bed and breakfast operators.

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

Sample calculation of the MAT and HST:

  • Total room charge/rate: $100
  • MAT 4 percent: $4
  • Net total of rooms charge and MAT: $104  
  • HST 13 percent:  $13.52
  • Total: $117.52

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.

Unpaid MAT, penalties and interest due may be added to the tax roll.

To register a hotel or change an existing registration, please get in touch with ORHMA at email mat@orhma.com or call 905-361-0268.

Questions?

For more information about MAT in Owen Sound, please contact mat@orhma.com or call 905-361-0268.

On January 18, 2024 an information session was held for hotel and motel operators in Owen Sound.  You can watch the presentation online by clicking here or clicking the image below.

Image of the start of the MAT info session video

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