Body: Council Type: Document Meeting: Regular Date: 2025 Collection: Agenda Attachments Municipality: Frontenac County
[View Document (PDF)](/docs/frontenac-county/Item Attachments/Agenda Item/2025/June/Consultant Briefing Mr Richard Allen will introduce Bonnie Ruddock of Regional Tourism Organization 9 Southeastern Ontario and Nicole Whiting/RTO Municipal Accommodation Tax Presentation.pdf)
Document Text
Investing in Community Through Tourism
Lanark County Tourism Partners Roundtable Why the Municipal Accommodations Tax Matters for Rural Municipalities July 5, 2023
Entirely rural 23,840 square km 6 Counties 45 Municipalities
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South Eastern Ontario 11 Destination Partners (DMO/DMP) Spanning over 315 KM 7 Counties 55 Municipalities
Rural Tourism • Value of Tourism • Our Character and Potential • Support for Tourism • Barriers to Success
Municipal Accommodation Tax (MAT) • The Municipal Accommodation Tax (MAT) came into effect in December 2017, legislated through the Municipal Act, 2001, granting municipalities the authority through bylaw to implement a tax on transient accommodations. • Its purpose is to generate revenue that supports tourism promotion and development initiatives within a municipality. 5
Municipal Accommodation Tax (MAT) Applicability and Rate
• Applicability: Typically applied to roofed accommodations, such as hotels, motels, bed & breakfasts and short-term rentals Can be applied to non-roofed accommodations Applicable only on stays of 30 days or less Accommodations at universities/colleges is exempt. • Rate: Varies across the province, average is 4-6%
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Municipal Accommodation Tax (MAT) Collection and Revenue Allocation
• Collection: Accommodation providers collect the MAT and remit to the municipality (or their designated collection/administration body). Municipality determines reporting and remittance frequency. • Revenue Allocation: Municipality is required to share at least 50% of revenue, after reasonable costs of administration and collection, with an eligible tourism entity. The eligible tourism entity must have a tourism mandate and must spend the allocated funds on tourism marketing and development initiatives that support the municipality. The municipality can spend their portion of funds as they see fit. 7
Municipal Accommodation Tax (MAT) Implementation to Date
• 73 of 444 Ontario municipalities within Ontario have implemented generating approx. $244 million in additional revenues to municipalities
Ontario’s Highlands (Haliburton County – 4 municipalities): • Implemented Short-Term Rental and MAT bylaws across all 4 municipalities effective October 1, 2024. • MAT is only applicable on Short-Term Rentals • 3 out of 4 municipalities charging 4%, one charging 3% • Collection administered by Granicus (3rd party) • 50% of revenue shared with newly established Municipal Services Corporation at County level. 8
Municipal Accommodation Tax (MAT) cont Implementation to Date
Ontario’s Highlands (Renfrew County – 17 municipalities): • City of Pembroke approved implementation of MAT on all accommodation providers effective January 1, 2025 at a rate of 4%. The Ottawa Valley Tourist Association (OVTA) is the named eligible tourism entity to receive 50% of revenue. • Town of Petawawa approved implementation of MAT on 5 roofed accommodation providers effective January 1, 2025 at a rate of 3%. OVTA is the named eligible tourism entity to receive 50% of revenue. • Greater Madawaska Township passed a bylaw on Short-Term Accommodation (STA) effective April 1, 2025 requiring all short-term rental accommodations to register with the municipality. 9
Municipal Accommodation Tax (MAT) cont. Implementation to Date Region 9: • Kingston Accommodation Partners implemented the MAT in August 2018 - 5% • Prince Edward County implemented the MAT in February 2021- 4% • Brockville implemented the MAT in May 2018 – 4% • Gananoque implemented the MAT in December 2019 – 4% • Bay of Quinte implemented the MAT in January 2019 – 4% • Cornwall implemented the MAT in April 2018 – 5%
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Municipal Accommodation Tax (MAT) Potential for Frontenac County
• Access additional revenue to achieve your strategic objectives without increasing the burden on local tax payers. • Credibility as a coordinating entity for community development • Tremendous leveraging potential with other organizations to tap into more opportunities previously cost-prohibitive. • Benefit from the lessons learned from early adopters who have navigated through implementation process. • Expertise of staff to carry out the work 11
Municipal Accommodation Tax (MAT) Key Recommendations
• Don’t reinvent the wheel – well documented path to implementation exists and a suitable structure for Frontenac County will become evident. • Seek support from the Tourism Association of Ontario (TIAO) – up to date on the MAT landscape in Ontario • Get key community leaders on side and supportive of the initiative early especially an accommodator and a resident • Prepare for objections – most are a result of a misunderstanding of how the MAT works and simply a negative perspective on anything that suggests “tax”.
Municipal Accommodation Tax (MAT) Resources
Municipal Act, 2001 – Transient Accommodation Tax https://www.ontario.ca/laws/regulation/170435 Tourism Industry Association of Ontario (TIAO) – FAQs https://www.tiaontario.ca/cpages/municipalaccommodationtax
Thank You
