Municipal Accommodation Tax (MAT)

Municipal Accommodation Tax (MAT)

On December 18, 2018, City Council approved By-Law 2018-84, a By-Law to implement the Municipal Accommodation Tax (MAT) in the City of North Bay.

The Municipal Accommodation Tax is effective February 1, 2019 at a rate of 4%.

The tax applies to accommodation sold for a continuous period of less than 30 days in a hotel, motel, lodge, inn, bed and breakfast, dwelling unit or any place an accommodation is provided.

The Municipal Accommodation Tax is not a tax on local businesses. The tax is applied to the accommodation charge only and not to other fees such as valet parking, laundry service or continental breakfast.

The Municipal Accommodation Tax must be identified as a separate item or charge on each bill, receipt or invoice.

 

Accommodator Establishment Information Report

Accommodator Reporting Portal

FAQs for Accommodation Guests

 

General Information

North Bay City Council approved the implementation of a mandatory 4% Municipal Accommodation Tax (MAT) effective February 1, 2019. In accordance with By-Law 2018-84, MAT will apply to the purchase of accommodations provided for a continuous period of less than 30 days.

The Municipal Accommodation Tax is added to the price of an accommodation booked in the City of North Bay as required by law.  It applies to all accommodations of less than 30 consecutive days.

The rate is 4% of the total room cost before HST.

The MAT tax is effective February 1, 2019.

The 4% is only applied to the purchase price of the accommodation (i.e. room fee) and it does not apply to amenity fees or service charges as long as they are itemized separately on your invoice. 

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

If the accommodation provider is registered for HST, then they are responsible for collecting and remitting the HST on the entire charge including the MAT.

Some municipalities do not have a Municipal Accommodation Tax, but rather a voluntary “Destination Marketing Fee”.  These fees were sometimes removed by the hotels at a guest’s request.  Municipal Accommodation Tax is a mandatory tax authorized through a local By-Law, and the charge cannot be removed.

 

Payment of the Municipal Accommodation Tax is mandatory and is authorized by City By-Law 2018-84.

Yes, there is no exemption from the MAT for medical related travelling. Many accommodation establishments (including those in North Bay) offer compassionate rates that are applied at their own discretion. 

The Ontario Ministry of Health & Long-Term Care provides funding through the Northern Health Travel Grant for eligible applicants, based on the distance to their closest medical specialist or Ministry funded health care facility able to provide the required health care services.  For more information visit their website.

If you are charged for the accommodation whether or not you actually occupy the room, 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.  

40% of the net revenue from the MAT will go to the municipality to be applied to various infrastructure investments which support tourism assets. The other 60% of the net revenue will go to Tourism North Bay. As an eligible tourism entity Tourism North Bay will administer the funds for tourism promotion and development, including a focus on attracting people to the city, support bid opportunities, and more.

The Municipal Act gives the authority to all municipalities to implement MAT in their community.  At last count there are more than 18 communities with the MAT in place or approved to begin implementing.  Industry assumptions are that most Ontario communities will be charging the MAT within the next few years.

FAQs for Accommodation Providers

Reporting Portal Registrations Now Open!!

 

General Information

 

The Municipal Accommodation Tax is a 4% fee imposed on the cost of transient accommodations lasting less than 30 days.

The MAT must be collected beginning February 1, 2019.  

On December 18, 2018 City of North Bay Council approved By-Law 2018-84, which provides for mandatory collection and remittance of the Municipal Accommodation Tax.  The municipality is authorized per Section 400.1 of the Municipal Act and Ontario Regulation 435/17 to establish and to collect the MAT. 

The tax will generate funding to promote tourism within the City of North Bay.  60% of the net MAT revenue will go to an eligible tourism entity with a focus on attracting more visitors through sports and cultural events, and promoting tourism including product development. City Council designated Tourism North Bay as the eligible tourism entity to receive and spend these funds.

The remaining 40% of the net revenue will be transferred to a reserve fund to be applied to various infrastructure investments which support tourism assets and make North Bay a memorable destination as directed by Council. 

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. 

Applicability and exemptions

 

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 30 days or less.  For clarity: 

  • Hospitality rooms and meeting rooms that do not contain a bed are not considered accommodations 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.

Accommodations Exemptions:

  • For a period of 30 consecutive days or more
  • Provided by a university or college
  • Provided by hospitals, long term care facilities, retirement homes and hospices
  • Provided by shelters, treatment centers and lodging of reformation of offenders
  • Provided at tent and trailer sites, campgrounds
  • Supplied by employers to their employees in premises operated by the employer
  • Room charges booked by, and direct billed to a provincial or federal authority are not MAT applicable. Any charges booked to an individual’s (government employee) credit card are MAT applicable.
  • Should a government agency book rooms for emergency reasons (forest fire crews, evacuations, other emergency) and have rooms billed directly to that agency – those rooms would be MAT exempt.
  • Please refer to City of North Bay By-Law 2018-84 for complete details on exemptions.

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

The MAT is charged on the rate that is paid by the guest and therefore the 4% MAT would be applied on the discounted rate.

MAT applies to accommodations purchased on or after February 1, 2019. If payment occurs on or after February 1st for accommodation occupied on or after February 1st, MAT applies even if provided through a corporate contract. 

The City of North Bay will charge the accommodation tax on Airbnb for stays of less than 30 days.  The tax does not apply to campgrounds.

Purchaser invoicing information

 

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 (4%) and the amount of the MAT imposed.  

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

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.  

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.

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.

Transition questions

 

If the accommodation was booked and paid for prior to February 1, 2019 the MAT is not applicable.  If the accommodation was booked before February 1, 2019 but paid for on or after February 1, 2019, the MAT is to be charged, collected and remitted. 

The MAT must be charged starting February 1, 2019 only. The MAT is not to be applied to any nights prior to February 1, 2019.

Yes, if final payment for room occurs on or after February 1, 2019 MAT applies to the accommodation rate, regardless of any deposits made.  If the deposit is applied to the purchase price of the accommodation provided on or after February 1, 2019, MAT will apply to the purchase price, including the deposit.

The MAT collected for the month of February must be reported to the City by March 15, 2019 and the related payment is due March 31, 2019.  Remittances are due on the last day of each month thereafter.

Collection and remittance

 

The 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.

You must complete the MAT Remittance Report on a monthly basis.  Follow the link below to the City’s MAT Reporting Portal:

https://www.cityofnorthbay.ca/MyNorthBay/Account/Login/

Further registration and reporting instructions for accommodators can be requested at mat@cityofnorthbay.ca

 

You are required to submit a Municipal Accommodation Tax Remittance Report by the 15th of each month for the MAT collected in the previous month.  For instance, the Remittance Report for MAT collected in February will be due no later than March 15.

Applications for Quarterly reporting may be submitted to mat@cityofnorthbay.ca and are subject to review and approval by the Treasurer of the City of North Bay.

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

  • By Mail
    • City of North Bay
      Accounts Receivable
      200 McIntyre Street E.
      North Bay, ON P1B 8H8
      Payments must be received in our office by the last day of the month following the reporting period.  Please allow sufficient time for mail delivery.  
  • In Person 
    • City of North Bay – City Hall – 200 McIntyre St. E.

Customer Service Centre - 1st Floor (cash, cheque, debit)

Further methods of payment will be forthcoming after finalization of MAT Reporting Portal.

Payments which are returned will be subject to a Returned Payment Charge in accordance with the City’s User Fee By-law in effect.

Any late or incomplete remittances will be charged an interest rate of 1.25% per month in accordance with the City’s User Fee By-law in effect.  

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

If no MAT was collected you will still be required to submit the Remittance Report indicating that no MAT was collected in the reporting period. 

The City and/or its agent have 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 Accommodation Tax collected and remitted to the City for a period of seven years.  

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 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.

About the Legislation

The Municipal Accommodation Tax is a new revenue tool that the provincial government has given Ontario municipalities to further promote tourism as an economic driver.

On May 17, 2017, the Province enacted Bill 127, Stronger, Healthier Ontario Act, 2017, providing municipalities the authority to levy a transient accommodation tax (hotel tax).  The Transient Accommodation Regulation 435/17 came into force on December 1, 2017, outlining provisions for municipalities across Ontario to implement a Municipal Accommodation Tax (MAT).

The Regulation applies if a municipality imposes a tax in respect of the purchase of transient accommodation in the municipality under Section 400.1 of the Municipal Act

On December 18, 2018, the City of North Bay passed By-Law 2018-84 to implement the Municipal Accommodation Tax.

Need More Information ?

Please visit the Municipal Accommodation Tax section of the City of North Bay website at www.cityofnorthbay.ca/mat

 

Further Information to be updated soon.

Contacts

Municipal Accommodation Tax
 MAT Inquiries
 705 474 0626 x2261
Blair Grant
 Financial Reports Coordinator
 705-474-0626 ext. 2261