Municipal Accommodation Tax

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. 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 Municipal Act 400.1 of the Act.

On September 27, 2021, Northern Bruce Peninsula Council passed By-law 2021-83, approving the implementation of a four percent (4%) mandatory MAT applicable on all short-term accommodations under 30 days.

The Municipal Accommodation Tax, or MAT, is a 4% tax charged on the cost of transient accommodations sold for a continuous period of less than 30 days within Northern Bruce Peninsula.

The tax applies to Short-Term Accommodations as defined in By-law 2021-84. A “Short-Term Accommodation” means private residential dwelling (or part of dwelling) that are rented to provide accommodations to a person or persons on a temporary basis for a period of less than 30 days and to which the Residential Tenancies Act, 2006, S.O. 2006, c. 17, as may be amended from time to time, does not apply.

Short Term Accommodations do not include bed and breakfast establishments, hotels, motels, campgrounds, hostels, lodges, or other commercially zoned accommodation uses for the travelling public.

The tax will generate funding to promote tourism within the Municipality of Northern Bruce Peninsula. 50% of the net revenue from the Municipal Accommodation Tax will go to tourism promotion and development. The Municipality will enter into an agreement with an eligible tourism entity for the use of these funds.

The other 50% of the net revenue will be retained by the Municipality of Northern Bruce Peninsula, earmarked for projects that promote tourism and benefit residents and visitors.

What hotel/accommodation charges are exempt from the Municipal Accommodation Tax?

The MAT applies only to the accommodation charge and not associated charges, such as meals or room incidentals, so long as these amounts are itemized separately on the bill. No portion of this tax is owed by municipal residents unless they pay for an accommodation that is subject to the Municipal Accommodation Tax. Currently, MAT is only charged to Short Term Accommodations.

Are long-term contracts for room rentals with businesses that exceed 30 days exempt?

Yes, the purchaser, per the By-law, is the person or business who remits money for the room and therefore the Municipal Accommodation Tax would not apply for a contract of 30 days or more. 

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

Municipal Accommodation Tax applies to accommodations purchased on or after April 1, 2022. If payment occurs on or after April 1st for accommodation occupied on or after April 1st, Municipal Accommodation Tax applies even if provided through a corporate contract.

The Municipal Accommodation Tax, or MAT, is a 4% tax charged on the cost of transient accommodations sold for a continuous period of less than 30 days within Northern Bruce Peninsula.

The tax applies to Short-Term Accommodations as defined in By-law 2021-84. A “Short-Term Accommodation” means private residential dwelling (or part of dwelling) that are rented to provide accommodations to a person or persons on a temporary basis for a period of less than 30 days and to which the Residential Tenancies Act, 2006, S.O. 2006, c. 17, as may be amended from time to time, does not apply.

Short Term Accommodations do not include bed and breakfast establishments, hotels, motels, campgrounds, hostels, lodges, or other commercially zoned accommodation uses for the travelling public.

your accommodation.  It does not apply to other fees or service charges, including meals, room incidentals, or parking. However, to be exempt from the Municipal Accommodation Tax, these amenities and service charges must be separately itemized on the invoice/bill.

The tax will generate funding annually to promote tourism within the Municipality of Northern Bruce Peninsula. 50% of the net revenue from the Municipal Accommodation Tax will go to tourism promotion and development.

The other 50% of the net revenue will be retained by Northern Bruce Peninsula, earmarked for projects that promote tourism and benefit residents and visitors.

• Q1 (January – March) is due on or before April 30
• Q2 (April – June) is due on or before July 31
• Q3 (July – September) is due on or before October 31
• Q4 (October – December) is due on or before January 31