The MAT came into effect on July 1, 2022. MAT applies to bookings that are received on or after July 1, 2022. Changes for Short Term Rental Operators with less than five rooms came into effect on January 1, 2024.

The MAT is applicable to any roofed accommodation with guests staying for less than 28 consecutive days (e.g. hotels, motels, inns, vacation rentals, cottage rentals, villas, country inns, B&Bs, etc.). Exclusions include tents, RVs, hospital stays, and more, as detailed in the legislation and By-law. 

The MAT for Niagara-on-the-Lake is charged at 3% as of January 1, 2024, and will move to 4% on January 1, 2025.

As of January 1, 2024, Short-Term Rental Operators are to remit after every quarter, with the due date falling on the last day of the month following the quarter's end. All other Accommodation Providers will remain on the current schedule that can be seen below.

For all Short-Term Rental Operators transitioning to new remittance schedules:

For all other Accommodation Providers:

As of July 1, 2022, MAT is a mandatory charge. 

No. The MAT is levied on visitors staying in Niagara-on-the-Lake accommodations.

No. MAT is only applicable to the accommodation portion of short-term, roofed accommodation in Niagara-on-the-Lake (e.g. motels, hotels, inns, B&Bs, vacation rentals, cottage rentals, villas, country inns, etc).

Funds are shared on an equal basis between the Town and the Local Destination Marketing Organization (DMO), after administration costs.

The DMO’s portion of funds generated through the Municipal Accommodation Tax are invested in sales, marketing, and development activities through Tourism NOTL, the Town’s official Destination Marketing Organization. Tourism NOTL promotes leisure visitors, meetings and conventions, major events, media relations, tour operators, and travel trade. Tourism NOTL also invests in long-term destination development initiatives aimed at enhancing the visitor experience.

The Town’s portion will placed into a reserve for future tourism initiatives, which include capital projects and potential initiatives coming out of the Town’s Tourism Study. Council approved the creation of a new MAT Governance Advisory Committee, composed of Council Member(s), Staff, Residents, DMO representative(s), and Operator(s) to develop approval criteria and make recommendations about MAT-funded initiatives.

In addition to remitting funds, you must include a Niagara-on-the-Lake Municipal Accommodation Tax Remittance Form. Remittance can take place in person, or by mail, as follows:

• In-person or by drop box at 1593 Four Mile Creek Road, Virgil. Please make cheques payable to The Town of Niagara-on-the-Lake. To link your payment with your property, write your MAT ID (which will be provided in the coming months) on the memo line of your cheque. Please include a printed copy of the completed remittance form. Remittances by credit card will not be accepted.

• By mail. To link your payment with your property, write your MAT ID (which will be provided in the coming months) on the memo line of your cheque.

Send a cheque or money order payable to the following address:

Town of Niagara-on-the-Lake

1593 Four Mile Creek Road, PO Box 100

Virgil, ON L0S 1T0

Town's Municipal Accommodation Tax Remittance Form

For all Short-Term Rental Operators:        

Quarterly Municipal Accommodation Tax Remittance Form

For all hotels/motels/inns: 

Monthly Municipal Accommodation Tax Remittance Form

No. Airbnb will not be collecting the MAT on behalf of Niagara-on-the-Lake 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 at the moment. 

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@notl.com.

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 3% (moving to 4% on January 1, 2025) is applied only to the purchase price of the accommodation (room rate). With the limitations of online booking platforms and software, it is not always possible to charge the MAT on the purchase of the accommodation only. 

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 as well as the dollar amount. 

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 (CRA). 

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 By-law No. 5435-22 and By-law No. 5540-23.

Yes. The Town'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. 5435-22 and By-law No. 5540-23.

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 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 as well as the dollar amount. 

Yes. Accommodation bookings made prior to July 1, 2022, are exempt.

Short Term Rental Bookings in establishments that have less than five (5) rooms made before January 1, 2024, with the stay occurring after January 1, 2024, are exempt.

If the Municipal Accommodation Tax was added to an invoice that was paid by a guest, and you subsequently issue a full or partial refund on that accommodation charge, the customer should also be refunded the applicable amount of MAT that corresponds to the refund amount. If the refund occurs after you have remitted the MAT, you can adjust the MAT submission the following month noting the refund in your submission documentation.

If you experience no-shows and your policy is to charge a portion of the room rental as a penalty, then the MAT should also be charged to the no-show portion. If, however, you have a flat administrative fee that is charged for no shows no matter what the room rate, then the MAT does not need to be applied.

• Accommodations that are rented for more than 28 days (applies only in the situation where the same individual is renting the same hotel room in a similar nature as one would rent an apartment for more than 28 consecutive days).
• Lodgings provided to students by a university, college, or post-secondary while the student is registered at and attending the institution.
• Every hospital referred to in the list of hospitals and their grades and classifications maintained by the minister of Health and Long-Term Care under the Public Hospitals Act and every private hospital operated under the authority of a license issued under the Private Hospitals Act
• Every long-term care home as defined in subsection 2(1) of the Long-Term Care Homes Act, 2007, retirement home and hospices
• Accommodations paid for by a School Board as defined in subsection 1 (1) of the Education Act.
• Treatment centres that receive provincial aid under the Ministry of Community and Social Services Act
• Every house of refuge, or lodging for the reformation of offenders
• Every charitable, non-profit philanthropic corporation organized as shelters for the relief of the poor or for emergency
• Every tent or trailer sites supplied by a campground, tourist camp or trailer park
• Every accommodation supplied by employers to their employees in premises operated by the employer
• Every hospitality room in an establishment that does not contain a bed and is used for displaying merchandise, holding meetings, or entertaining

The Municipal Accommodation Tax came into effect July 1, 2022, and is charged at a rate of 3% as of January 1, 2024. It is only applicable to the room portion of the costs associated to overnight accommodations. All other revenues generated from the accommodation services including, but not limited to, meeting room rental, food and beverage, room service, laundry services, parking etc. are excluded from the Municipal Accommodation Tax.

The HST is charged on the Municipal Accommodation Tax if the business is an HST registrant.

Yes, as of July 1, 2022, when booking your accommodations on AirBnB you will pay 3% MAT (as of January 1, 2024) of your total cost.

No. The Municipal Accommodation Tax is mandatory and must be paid at the same time that you pay for the accommodation.

No. Accommodations booked or paid for prior to July 1, 2022 are exempt. Reservations that were not booked by this date are subject to the Municipal Accommodation Tax upon payment of the accommodation.

Short Term Rental Bookings in establishments that have less than five (5) rooms made before January 1, 2024, with the stay occurring after January 1, 2024, are also exempt.

Funds are shared on an equal basis between the Town and the Local Destination  Marketing Organization (DMO), after administration costs.

The DMO’s portion of funds generated through the Municipal Accommodation Tax are invested in sales, marketing, and development activities through Tourism NOTL, the Town’s official Destination Marketing Organization. Tourism NOTL promotes leisure visitors, meetings and conventions, major events, media relations, tour operators, and travel trade. Tourism NOTL also invests in long-term destination development initiatives aimed at enhancing the visitor experience.

The Town’s portion will placed into a reserve for future tourism initiatives, which include capital projects and potential initiatives coming out of the Town’s Tourism Study.  Council approved the creation of a new MAT Governance Advisory Committee, composed of Council Member(s), Staff, Residents, DMO representative(s), and Operator(s) to develop approval criteria and make recommendations about MAT-funded initiatives.

 

The room purchaser would contact the accommodation provider.