Municipal Accommodation Tax
The County of Prince Edward is implementing 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.
Frequently Asked Questions
The 4% MAT comes into effect February 1, 2020. MAT will apply to bookings that are received on or after February 1, 2021.
The MAT for Prince Edward County will be charged at the industry standard rate of 4%.
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).
As of February 1, 2021, MAT will be a mandatory charge.
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.
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.
The County of Prince Edward’s Municipal Accommodation Tax Remittance Form is online here: MAT Tax Submission Form. Details will be coming soon on how to remit the form and payment. Remittance will take place quarterly. The first remittance will be due April 30, 2021.
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.
The MAT bylaw states that the 4% is applied only to the purchase price of the accommodation (room rate), however, with limitations of online booking platforms and software, if it is not possible to charge the MAT on the purchase of the accommodation only, the MAT may apply 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 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.
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.
Yes. The County of Prince Edwards’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.
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.
More information + Contact
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