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Municipal Accommodation Tax

Municipal Accommodation Tax

On November 23, 2017, the Province of Ontario issued the Transient Accommodation Regulation (O. Reg. 435/17), which came into force on December 1, 2017, and provides provisions for municipalities across Ontario to implement a Municipal Accommodation Tax (MAT) if they choose to do so.

On Monday, June 20, 2022, Town Council approved a Municipal Accommodation Tax (MAT) By-law (No. 5435-22). This new tax (2%) applies only to accommodation establishments with five or more rooms and for bookings made on or after July 1, 2022 (Bookings made before July 1, 2022, with the stay occurring after July 1, 2022, are exempt). Harmonized Sales Tax (HST) is to be collected on the MAT and remitted to the Canada Revenue Agency (CRA).)

The MAT By-law, in compliance with Ontario Regulation 435/17 Transient Accommodation Tax and Council's direction, includes, but is not limited to, the following elements: 

  • Applicable to accommodation establishments with five or more rooms
  • Starting on July 1, 2022, a rate of 2%, and moving to 3% on January 1, 2024, and 4% on January 1, 2025 (Bookings made before July 1, 2022, with the stay occurring after July 1, 2022, are exempt).
  • Funds generated from the program will be placed into a special reserve to be used for tourism promotion, Town capital infrastructure and tourism initiatives.

View the Town of Niagara-on-the-Lake MAT By-law at the following link: www.notl.com/town-hall/by-law-directory/municipal-accommodation-tax-law-5435-22

MAT Program Contact: mat@notl.com or call 905-468-3266

With the approval of the MAT By-law, Tourism NOTL, a subsidiary of the NOTL Chamber of Commerce, is approved as the local Destination Marketing Organization (DMO). MAT revenues will be split on a 50/50 basis, net of administration costs, with the local DMO. 

For directions and more information, please refer to the FAQ below.

Operator Frequently Asked Questions:

Information for Visitors

On Monday, June 20, 2022, Town Council approved a Municipal Accommodation Tax (MAT) By-law (No. 5435-22). This new tax (2%) applies only to accommodation establishments with five or more rooms and for bookings made on or after July 1, 2022 (bookings made before July 1, 2022, with the stay occurring after July 1, 2022, are exempt). 

Revenues generated from other hospitality services including, but not limited to, meeting room rental, food & beverage, room service, laundry service, parking etc. will be excluded from the Municipal Accommodation Tax. Some Bed & Breakfast operators may be exempt from charging a Municipal Accommodation Tax, otherwise this tax is applicable to all accommodations with 5 or more rooms, provide a stay of 28 consecutive days or less at hotels, motels, resorts, inns, cottage rentals, villas, country inns, vacation apartments, or any other accommodation not exempted.

The Municipal Accommodation Tax revenue is provided to Tourism NOTL for the purposes of promoting and growing the tourism industry in Niagara-on-the-Lake. 

The Municipal Accommodation Tax will come into effect on July 1, 2022, and will be charged at a rate of 2% for the overnight accommodation portion of your bill. The Municipal Accommodation Tax is HST applicable if the business is an HST registrant.

Visitors Frequently Asked Questions

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