Municipal Accommodation Tax

Town Council approved a mandatory four per cent Municipal Accommodation Tax (MAT) effective January 1, 2019. 

In accordance with By-law 2018-137, the MAT applies to the purchase of accommodations for stays less than 30 days. 

Fifty per cent of the net revenue from the MAT goes to the municipality. The town outs its portion of the proceeds into a reserve to be used toward tourism related projects and initiatives. The other 50 per cent of the net revenue (less a 5 per cent admin fee) will go to Visit Oakville. Visit Oakville will administer the funds for tourism promotion and development. 

How the MAT is applied

The four per cent fee will be applied to accommodations of less than 30 consecutive days and include hotels, motels, motor hotels, lodges, inns, resorts, bed and breakfasts, or other lodging including those sold online. It is applied only to the purchase price of accommodation (ie. room fee) and does not apply to amenity fees or service charges.

If you are charged for the accommodation, whether or not you actually show up for your reservation, then MAT will apply. If you do not cancel your room reservation and you are charged for accommodation (no-show included) the MAT will be charged. If you are not charged for the accommodation but subject to a cancellation fee, the MAT would not apply. 

Background

As part of the 2017 Provincial Budget, the Province of Ontario granted municipalities the authority to implement a tax on short term accommodations. Section 400.1 of the Municipal Act, 2001 and Ontario Regulation 435/17 authorize the establishment and collection of the MAT.

• Report to Administrative Services Committee (June 2018)
• Report to Administrative Services Committee (December 2018)