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 force on December 1, 2017, outlining provisions for municipalities across Ontario to implement a Municipal Accommodation Tax (MAT).
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.
The Regulation applies if a municipality imposes a tax in respect of the purchase of transient accommodation in the municipality under section Municipal Act 400.1 of the Act.
On August 13, 2024, the Township of Nipigon approved By-Law 1940 - Municipal Accommodation Tax By-law, a by-law to establish a Municipal Accommodation Tax within the boundaries of the Township of Nipigon.
The Municipal Accommodation Tax is effective October 1, 2024 at a rate of 4%.
Forms for Accommodation Providers
Schedule A - Accommodation Provider Information Report
Schedule B - Municipal Accommodation Tax Return Form
Accommodation Providers FAQs
The Municipal Accommodation Tax, or MAT, is a 4% tax charged on the cost of fixed roof transient accommodations sold for a continuous period of less than 30 days within the boundaries of the Township of Nipigon.
The tax applies to all accommodation sold for a continuous period of less than 30 days in a hotel, motel, lodge, inn, hostel, bed and breakfast, dwelling unit or any place an accommodation is provided.
Mandatory. The Municipal Accommodation Tax must be collected by the accommodation provider at the same time customers are charged for the booking.
Yes, every bill, receipt, invoice or similar document for the purchase of accommodation must have a separate item identified as “Municipal Accommodation Tax” showing the rate at which the Municipal Accommodation Tax is calculated (4%) and the amount of the Municipal Accommodation Tax charged.
If the accommodation was booked and paid for prior to June 1, 2018, the Municipal Accommodation Tax is not applicable. If the accommodation was booked before June 1, 2019, but paid for on or after June 1, 2019, the Municipal Accommodation Tax is to be charged, collected and remitted.
