Municipal Transient Accommodation Tax (MAT)

 Documents

By-law No. 2025-019 - Municipal Transient Accommodation Tax (MAT)

Accommodation Establishment Information Sheet

Municipal Accommodation Tax Return Form

How is the MAT applied to the purchase price of accommodation?

Is the payment of the MAT optional?

No, as noted above, the MAT is mandatory. It must be paid at the same time you are paying the accommodation provider.

Why do I have to pay the MAT?

Payment of the MAT is mandatory and is authorized by the City of Temiskaming Shores By-Law 2025-019. The Province enacted Bill 127, Stronger, Healthier Ontario Act, 2017, providing single and lower tier municipalities the authority to levy a transient accommodations tax (or hotel tax). Section 400.1 of the Municipal Act, 2001 and O. Reg. 435/17 Transient Accommodation Tax provide a framework for the administration of a MAT.

 Do I still need to pay the MAT if I do not show up for the reservation?

If you are charged for the accommodation whether or not you actually occupy it, then MAT will apply. If you do not cancel your room reservation and you are charged for accommodation (no-show included) the MAT will be charged. If you are not charged for the accommodation but subject to a cancellation fee, the MAT would not apply.

 What happens with the money collected through the MAT?

Fifty per cent (50%) of the net revenue from the MAT will go to the municipality and directed into a reserve fund to be used towards economic development opportunities.

The other fifty percent (50%) of the net revenue will go to The Temiskaming Shores Development Corporation. As an eligible tourism entity (ETE) the TSDC will administer the funds for tourism promotion and development, including a focus on attracting people to the City, and more.

A reasonable percentage of the monies collected will be used to offset the costs of administering the MAT program.

 When do I start collection the MAT?

 What is the authority to charge the MAT?

The municipality is authorized per Section 400.1 of the Municipal Act, 2001 O. Reg. 435/17 to establish and to collect the MAT. On February 18^th, 2025, the City of Temiskaming Shores passed By-Law 2025-019, which provides for mandatory collection and remittance of the Municipal Transient Accommodation Tax within the City.

 What is the purpose of the MAT and how will the revenue be used?

Fifty per cent (50%) of the net revenue from the MAT will go to the municipality and directed into a reserve fund to be used towards economic development opportunities.

The other fifty percent (50%) of the net revenue will go to The Temiskaming Shores Development Corporation. As an eligible tourism entity (ETE) the TSDC will administer the funds for tourism promotion and development, including a focus on attracting people to the City, and more.

A reasonable percentage of the monies collected will be used to offset the costs of administering the MAT program.

 What are considered reasonable costs of collection and administering the MAT program?

Costs incurred by the municipality directly related to the administration and collection of the MAT are recoverable. Best practices recommend that costs for staffing, development of forms, systems, information technology cost, banking/point of sale fees, audit or third-party costs including legal and collection agency costs to collect funds owing would be included in the costs recovered prior to revenue sharing.

 What accommodations are affected by the MAT?

Accommodation providers, including hotels, motels, motor hotels, lodges, inns, resorts, bed and breakfast or other establishments providing lodging in all, or part of a dwelling are required to collect and remit the Municipal Accommodation Tax on accommodations of thirty days or less. For clarity:

• Hospitality rooms and meeting rooms that do not contain a bed are not considered accommodation and would not be subject to the MAT.
• Amenity fees and service charges including meals, room incidentals, valet services or parking are not subject to the MAT, provided they are separately itemized on the invoice.

What accommodations or purchasers are exempt from the MAT? (Items below are summarized)

• For a period of more than 30 consecutive days.
• Provided by a university or college.
• Provided by hospitals, long term care facilities, retirement homes and hospices.
• Provided by shelters, treatment centres and lodging of reformation of offenders.
• Provided at tent and trailer sites.
• Supplied by employers to their employees in premises operated by the employer.
• Province of Ontario.
• School Boards.

What if I have long term contracts with businesses that exceed 30 days, even though the business may authorize its employees to stay for various periods of time less than 30 days?

MAT applies to purchasers that utilize the accommodation for 30 consecutive days or less. The purchaser, per the MAT by-law, is the guest in the room and therefore the MAT would apply and must be collected.

What if I have existing contracts with businesses with a fixed room rate?

MAT applies to accommodations purchased on or after Mat 1st, 2025. If payment occurs on or after May 1st, 2025, for accommodation occupied on or after May 1st, 2025 MAT applies even if provided through a corporate contract.

Do we charge MAT for a Late Room Fee?

If the fee is on a separate line item on the guest folio, you do not charge MAT on that fee.

Do I need to disclose the MAT on the invoice or receipt that is provided to the Purchaser?

Yes, include on every bill, receipt, invoice, or similar document for the purchase of Accommodation, a separate item identified as “Municipal Accommodation Tax” showing the rate at which the MAT is calculated (5 %) and the amount of the MAT imposed.

Is HST charged on the MAT?

If the provider is registered for HST, the accommodation provider is responsible for collecting and remitting the HST on the entire charge including the MAT and remit the HST directly to the Canada Revenue Agency (CRA). Contact the CRA or your advisers if you have further HST questions.

Is the MAT applicable to guests that do not show up for their reservation?

If a guest is charged for accommodation (no-shows included) the MAT is to be collected and remitted. If the guest is not charged for the accommodation but is required to pay a cancellation fee, the MAT would not apply to the cancellation fee.

What revenue does MAT apply to if I charge a fee that includes accommodation and meals (such as bed and breakfast)?

The accommodation provider would be responsible to allocate the revenue between the overnight accommodation and other services, amenities, or other charges separately on the invoice and collect and remit the MAT on the overnight accommodation portion of the fees. If the fees are not separately listed on the invoice, the MAT will apply to the entire invoice.

Can I deduct commission paid to a third party who collected the booking from the room revenue used to calculate the MAT?

No, the revenue to be used to calculate the MAT is the purchase price of the accommodation. Costs incurred to secure or provide the accommodation are not deductible.

How do I report the MAT that I collected?

You must complete the Municipal Accommodation Tax Return Form.

These can be submitted via email at: finance@temiskamingshores.ca 

The report is located on the City’s website and includes due dates.

When do I have to submit my Report to the City on the MAT I collected?

A Provider shall, on or before the last day of the month following the previous month, remit to the Municipality the amount of the MAT collected for the previous month and shall submit the Municipal Accommodation Tax Return Form.

What happens if I am late to submit my Report to the City by the required due date?

If you are late to submit the Municipal Accommodation Tax Return Form the required due date the amount is automatically determined based on the following calculation: (amount of revenue that would have been generated had the Establishment experienced full occupancy for the period) x (5%) (the amount MAT that is due and unremitted). This amount shall be assessed on the first day of default.

How do I remit the MAT that I collected?

Payment to the City can be made via the following methods:

• Online Banking
• EFT
• By Mail – Cheques only
• In person – Debit, Cash or Cheque

Payments must be received in the office by the last day of the following month.

Please allow sufficient time for mail delivery. Mail to:

City of Temiskaming Shores
Attention: Accounts Receivable
Box 2050
Haileybury, ON
P0J 1P0

Please make cheques payable to “City of Temiskaming Shores”.

What happens if I am late in submitting my payment for MAT collected?

Penalties and interest at a monthly rate of interest applicable to overdue accounts receivable invoices shall apply to any outstanding Municipal Accommodation Tax.

What if a refund was issued to a guest after submitting the return?

Adjustments from prior reporting periods can be made in the period the refund was returned.

Do I need to prepare a Municipal Accommodation Tax Return Form if I did not collect any MAT that month?

Yes, you will be required to submit the Municipal Accommodation Tax Return Form for the period indicating no MAT was collected. If all your guests were for extended stays (31 days or longer) or another qualified exemption, you must submit a monthly report providing the details for the exemptions.

Will the City have an audit process to verify monthly Remittance Reports from the Providers?

The City has the authority to inspect and audit all books, documents, transactions, and accounts of accommodation providers. Accommodation providers must keep books of account, records and all documents related to the sale of accommodations, amount of the Municipal Transient Accommodation Tax collected and remitted to the City for a period of no less than seven (7) years.

Why do I need to complete an Accommodation Establishment Information Sheet?

The Accommodation Establishment Information Sheet will be used by the City to set up your establishment name, address, and contact information correctly in our accounting system and provide you with a customer ID. This customer ID will then be used to associate your monthly remittances and payments with the proper establishment.

Why are you asking for the average daily rates for the previous year?

If the MAT Remittance Report is not completed and submitted when due, the City will assess the MAT based on the average daily rate provided on the Accommodation Establishment Information Sheet multiplied by the number of accommodations available each day during the period which the remittance was due as though all the accommodations had been purchased throughout the period.

Do I have to charge the Municipal Accommodation Tax if a guest has booked their stay prior to January 1, 2025, when the MAT is implemented?

If the accommodation was booked and paid for prior to May 1st, 2025, the MAT is not applicable.

If the accommodation was booked before May 1st, 2025, but paid for on or after May 1st, 2025, the MAT is to be charged, collected and remitted.

If a guest's stay begins prior to May 1st, 2025, and ends after May 1st 2025, do I charge the MAT when their stay begins?

The MAT must be charged starting May 1st, 2025, only.

The MAT is not to be applied to any nights prior to May 1st, 2025.

If a guest puts a deposit to hold a room prior to May 1st, 2025, for a booking May 1st, 2025, or later, does MAT apply?

When is my first remittance due?

The MAT collected for the month of May must be reported to the City by the Last Day in June 2025 and the related payment is due June 30^th, 2025, and every last day of the month thereafter.