Municipal Accommodation Tax

The tax applies to lodging (i.e., room or space used for sleeping accommodation) in a hotel, motel, motor hotel, campground, campsite, recreation vehicle, park model recreation vehicle, mobile home park, trailer park, lodge, inn, resort, hostel, bed and breakfast, short-term rental accommodation, boat or boat house, dwelling or dwelling unit, commercial resort unit, or any other establishment that is identified in the MAT by-law. The MAT is generally applied on a per-room basis, regardless of the number of beds or occupants sleeping in a room.

The MAT by-law takes effect on January 1, 2025. However, accommodation providers have been given a one-month extension to better understand the requirements for MAT collection, reporting, and remittance. Accommodation providers should collect the tax beginning on February 1, 2025. Bookings or reservations made prior to February 1, 2025, are exempt from the MAT. The remittance report for the first quarter of 2025 is due on April 15, 2025.

The MAT is a mandatory tax and guests cannot refuse to pay it. Payment of the MAT should be made at the time when the accommodation is purchased.

The provincial government legislated the transient accommodation tax in 2017 as a way to give municipalities and tourism entities the financial means to continue promoting and developing tourism. The City of Port Colborne recognizes the MAT as a vital revenue source that takes the tourism funding burden off of local taxpayers and allows for investments in enhanced marketing and promotion, event support, and tourism-related infrastructure or development.

Yes, HST is charged on top of the tax. The MAT is deemed part of the consideration for the supply of transient accommodation. Section 154 of the Excise Tax Act (R.S.C., 1985, c. E-15) outlines the items that are included in the base for HST. The accommodation provider is responsible for collecting and remitting both the HST and the MAT on the purchase price of the accommodation.

The tax applies only to the purchase price (or room rate) of the accommodation, and it should not be applied to amenity, ancillary or other service fees or charges (e.g., meeting room rentals, parking, food and beverage, internet, phone charges, etc.).

The maximum number of consecutive days that the tax can be charged is 30 (or 29 nights).

Yes, stays exceeding 30 days (or 29 nights) are not considered transient and are therefore exempt from the MAT. In cases where guests haven’t booked or reserved accommodation for longer than 30 days, MAT is payable for the first 30 consecutive days only.

Please refer to section 4 of the MAT by-law for a list of exemptions.

No, accommodation providers should only apply the tax to any new bookings, purchases or stays beginning on and after February 1, 2025.

Accommodation providers that, intentionally or unintentionally, fail to collect the MAT are operating in violation of the MAT by-law. Please refer to section 9 of the MAT by-law for information on the City’s assessment procedure.

Popular accommodation booking platforms will not automatically collect the MAT on behalf of the City of Port Colborne. Many of these platforms have built-in functionality to add a tax. Please consult with the booking platform directly for instructions on how to apply the MAT to your online listings.

Resources

• Airbnb - airbnb.ca/help/article/2523
• Vrbo - help.vrbo.com/category/Local_Taxes
• Booking.com - partner.booking.com/en-us/help/commission-invoices-tax/local-taxes/understanding-vat-and-local-taxes

The City of Port Colborne has designated the Ontario Restaurant Hotel and Motel Association (ORHMA) as its agent for collecting reports and remittances from accommodation providers. Please complete this MAT registration form or contact ORHMA at mat@orhma.com or 905-361-0268 to receive an email with a link to register for the online reporting system. Reports will only be accepted via the online reporting system.

To maintain secure access, each accommodation provider will have their own unique login credentials for the reporting system. All system data will be kept confidential. Only designated City staff and a compliance officer from ORHMA will have access to this data.

MAT remittance reports must be submitted quarterly, with separate data provided for each of the three months of that quarter. If you don’t have access to the online reporting system, please complete this MAT registration form or contact the Ontario Restaurant Hotel & Motel Association (ORHMA) at mat@orhma.com or call 905-361-0268 to register for an account. The online system’s reporting tool will calculate the amount of MAT payable to the City of Port Colborne based on your inputted data for:

• Room nights available for the month
• Room nights occupied for the month
• Purchase prices of the rooms sold
• Room revenue
• Room revenue with exemptions (if applicable)

Reports and remittances should be submitted within 15 days after the last day of the month following each quarter.

In addition to facilitating the reporting process, the Ontario Restaurant Hotel & Motel Association (ORHMA) is set up to receive payments on behalf of the City of Port Colborne. Payments can be made to ORHMA through the online reporting system by way of electronic funds transfer (EFT), wire, or cheque. Cash and credit card payments will not be accepted.

Will I be notified when reports and payments are due?

Yes, registering for the online reporting system ensures you receive timely reminders about when reports and payments are coming due. However, please pay close attention to the due dates to avoid missing them.

What happens if a late payment is made?

A monthly charge of 1.25 percent is added to any unpaid amount starting the first day of every calendar month until the balance is paid in full. Penalty and interest charges for late or non-payment are set by City by-law and cannot be waived. The City of Port Colborne can take additional steps to recover payment, which may include measures like adding arrears to the tax roll, registering liens on properties, utilizing a collection agency, or bringing legal action against the accommodation provider.

What if no tax was collected during a reporting period?

Even if no tax was collected, accommodation providers must submit remittance reports indicating that no tax was collected during the reporting period.

If the MAT was added to a bill or invoice that was paid by the guest, and the guest was subsequently issued a full or partial refund, then the guest should also be refunded the amount of the MAT that corresponds to the refund amount. If the refund occurs after the MAT has been remitted to the City, please adjust your next quarterly report accordingly and indicate the amount of the refund.

Adjustments from a previous report can be made in the subsequent quarterly report. For information on the refund application process, please refer to section 12 of the MAT by-law.

Does the City have the authority to audit accommodation providers?

According to section 10 of the MAT by-law, the City of Port Colborne has the authority to inspect and audit all books of account, records, and documents of accommodation providers to verify the accuracy and completeness of the amount of MAT collected and remitted to the City.

For how long must I keep my MAT-related records?

Accommodation providers should ensure that all books of account, records, and documents associated with the MAT are retained for a period of no less than seven years.