Municipal Accommodation Tax

Town Council approved the implementation of a mandatory four per cent Municipal Accommodation Tax (MAT) effective January 1, 2019. In accordance with By-law 2018-137, MAT applies to the purchase of accommodations for stays less than 30 days.

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.

For more information contact ServiceOakville at 905-845-6601 or service@oakville.ca

Background/Legislation

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.

June 18, 2018 report to Administrative Services Committee

December 11, 2018 report to Administrative Services Committee

Forms

Establishment Information Sheet (pdf)
Tax Return Form (pdf)

Frequently asked questions

The Municipal Accommodation Tax (MAT) is a four per cent tax imposed on accommodations of less than 30 days. The commencement date of the MAT is January 1, 2019. The MAT supports tourism development efforts in the Town of Oakville.

The MAT is applicable to all accommodations under 30 days at hotels, motels, bed and breakfasts, hostels, dwelling units.

The four per cent tax is only applied to the purchase price of the accommodation (i.e. room fee) and it does not apply to amenity fees or service charges. 

No, the MAT is mandatory. It must be paid at the same time you are paying the accommodation provider. There are no exemptions.

If you are charged for the accommodation whether or not you actually occupy it, 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.

Fifty per cent of the net revenue from the MAT will go to the municipality. The town will put 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% admin fee) will go to Visit Oakville. Visit Oakville will administer the funds for tourism promotion and development.

Visit Oakville is an incorporated, destination tourism organization comprising of stakeholders from the Chamber of Commerce, hotels, BIA’s, sports and culture. Visit Oakville is a not-for-profit organization and acts as a destination management organization operated through a Board of Directors comprised of Oakville Tourism stakeholders.