FAQs
When will the Municipal Accommodation Tax take effect.
The MAT will come into effect October 1, 2024. MAT applies to bookings that are made on or after October 1, 2024.
What types of accommodation are required to collect and remit the MAT?
The MAT is applicable to any Short-Term Rental accommodation with guests staying for less than 28 consecutive days. Exclusions include tents, RVs, hospital stays and more, as detailed in the legislation.
How much is the Municipal Accommodation Tax?
The MAT is charged 4% in the townships of Algonquin Highlands, Highlands East and Minden Hills. It is charged 2% in the township of Dysart et al.
Is this a mandatory or volunteer tax?
As of October 1, 2024, MAT will be a mandatory charge.
Is this a tax on Haliburton County residents?
No. The MAT is levied on visitors staying in Short-Term Rentals located within The County of Haliburton.
Is the MAT applicable to restaurants, attractions, etc.?
No. MAT is only applicable to the accommodation portion of short-term rental accommodations in The County of Haliburton.
What happens with the funds generated through MAT?
By law, half of the funds generated by the MAT will remain with the municipality to be reinvested in the Community. The other half must be used to support tourism marketing and development. The County will be creating a municipal services corporation to manage the funds that are allocated to tourism marketing. This corporation will be an industry-led destination marketing organization and will work in partnership with the municipality to align with tourism management efforts.
How do I remit MAT funds to the municipality?
To remit funds, you will fill out the Municipal Accommodation Tax Remittance Form which can be obtained through Granicus.
The Municipal Accommodation Tax Remittance Form is will be posted online at a later date.
Even if you do not rent during the billing cycle you must submit a form. In the bottom section just write NIL and submit.
Will Airbnb or VRBO collect and remit the MAT on my behalf?
Airbnb will not be collecting the MAT on behalf of Haliburton County short-term rental hosts.
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.
What if I did not collect any Municipal Accommodation Tax in the reporting period?
If you did not book 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 and indicate that MAT was not collected during the reporting period.
What fees are subject to MAT?
The MAT by-law states that the tax is applied only to the purchase price of the accommodation (room rate). An example of how it is tabulated is below:
$150.00 – Accommodation rate
6.00 – MAT (4%)
15.00 – Cleaning and host service fee
171.00 – subtotal
22.23 – HST
193.23 – Total Accommodation Cost
Is the Harmonized Sales Tax (HST) charged on the Municipal Accommodation Tax?
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.
Are there interest charges or penalties if I don't remit MAT?
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.
Is there an auditing process to verify submissions?
Yes. Township tax collectors may inspect and audit all books, documents, transactions, and accounts of accommodation providers.
Do I need to show the Municipal Accommodation Tax on the invoice or receipt?
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.
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.