Municipal Accommodation Tax
The County of Prince Edward implemented a Municipal Accommodation Tax (MAT) on February 1, 2021. MAT is a tax that is levied on visitors rather than residents. Currently, more than 20 municipalities in Ontario have implemented a MAT.
View the County of Prince Edward MAT by-law.
Licensed accommodators use the County of Prince Edward Municipal Accommodation Tax Remittance Form to remit MAT quarterly.
MAT Program Financial Submissions Contact:
firstname.lastname@example.org or call 613.476.2148 ext. 1503
Aspects of the MAT program are administered by County staff across multiple departments. Please read the FAQs below and direct further questions to the appropriate contacts:
Frequently Asked Questions:
The 4% MAT came into effect February 1, 2021. MAT applies to bookings that are received on or after February 1, 2021.
The MAT is applicable to any roofed accommodation with guests staying for less than 30 consecutive days (e.g. hotels, motels, inns, vacation rentals, B&Bs, etc.). Exclusions include tents, RVs, hospital stays, and more, as detailed in the legislation.
The MAT for Prince Edward County will be charged at the industry standard rate of 4%.
As of February 1, 2021, MAT will be a mandatory charge.
No. The MAT is levied on visitors staying in Prince Edward County accommodations.
No. MAT is only applicable to the accommodation portion of short-term, roofed accommodation in Prince Edward County (e.g. motels, hotels, inns, B&Bs, vacation rentals, etc).
By law, half of the funds generated by the MAT will remain with the municipality to support tourism infrastructure development. The other half must be used to support tourism marketing and development. Industry and public consultation will be taking place in Fall 2020/Winter 2021 to help determine how MAT funds will be allocated and spent.
In addition to remitting funds, you must include a County of Prince Edward Municipal Accommodation Tax Remittance Form. Remittance can take place in person, by electronic funds transfer or by mail, as follows:
- In-Person or by drop box at Shire Hall. Please make cheques payable to The County. To link your payment with your property, write your MAT ID (ie MT2021-12345) on the memo line of your cheque. Please include a printed copy of the completed remittance form. Remittances by debit and/or credit card will not be accepted.
- Electronic Funds Transfer. Transfer funds to email@example.com. To link your payment with your property, please include NAME/STA Property, address, phone number, MAT ID (ie MT2021-12345) in the space provided for notes. For your records, capture a screen shot of your completed transaction or save any automated notifications of the completed transaction. You must also submit a completed remittance form to firstname.lastname@example.org.
- By mail. Please make cheques payable to The County. To link your payment with your property, write your MAT ID (ie MT2021-12345) on the memo line of your cheque. Please mail your cheque to The County – Shire Hall 332 Picton Main St. Picton, ON K0K 2T0 and enclose a printed copy of the completed remittance form.
For 2021, remittance deadlines are April 30, 2021, July 31, 2021, October 31, 2021 and January 31, 2022.
The County of Prince Edward’s Municipal Accommodation Tax Remittance Form is online here: Mat-Tax-Submission-Form – Fillable Form.
Airbnb will not be collecting the MAT on behalf of Prince Edward County hosts. In the future, the Province may make it mandatory for booking platforms to take care of collection and remittance, but there is no timeline for this to happen.
For now, there is functionality to ‘add tax’ through the Airbnb platform, which hosts can read about here. To access the ‘add tax’ feature, hosts will need Airbnb’s professional tools. Find more information about them here.
When adding the tax, hosts will be prompted for a MAT tax number. If you haven’t already received this number by email, you can get it by emailing MAT@pecounty.on.ca
If you did not sell any accommodations during the reporting period, and therefore did not collect any Municipal Accommodation Tax, you will still be required to submit the MAT remittance form indicating that MAT was not collected during the reporting period.
The MAT by-law states that the 4% is applied only to the purchase price of the accommodation (room rate). With limitations of online booking platforms and software, it is not always possible to charge the MAT on the purchase of the accommodation only. In these cases, the MAT may be applied to other service or amenity fees (e.g. cleaning fees, booking fees) in addition to the cost of the room night. This additional revenue must be reported and included with the remittance.
Yes, if the accommodation provider is registered for HST. The accommodation provider is responsible for collecting and remitting the HST on the room charge and on the Municipal Accommodation Tax. HST is remitted directly to the Canada Revenue Agency.
Yes. Interest will apply on any overdue remittance at a monthly rate of 1.25% from the first day after the tax remittance is due and interest will apply after each month thereafter on the principal amount owing during time as the default continues. Other penalties are listed in the MAT By-law No. 53-2020.
Yes. The County of Prince Edward’s tax collectors may inspect and audit all books, documents, transactions and accounts of accommodation providers for the purposes of administering and enforcing By-law No. 53-2020.
Yes, every bill, receipt, invoice or similar document for the purchase of accommodation must have a separate line item identified as “Municipal Accommodation Tax” showing the rate at which the Municipal Accommodation Tax is calculated (4%) and the dollar amount of the Municipal Accommodation Tax.
If limitations with booking platforms or software do not allow the MAT to be calculated as a separate line item, the MAT can be worked into the room cost. In this case, a note on the receipt, invoice or statement is required and must include the MAT percentage (4%) as well as the dollar amount.
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 effect 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.
MAT Program Contact:
email@example.com or call 613.476.2148 ext. 1503