Municipal Accommodation Tax (MAT)

We Welcome Your Feedback on the Potential Implementation of a Municipal Accommodation Tax (MAT) in Wasaga Beach

The Town of Wasaga Beach is considering implementing a Municipal Accommodation Tax (MAT) and we are seeking input from residents, businesses, and stakeholders.

Background

In August 2024, Council received Staff Report 2024/08/22-16, which approved public and industry consultation on the potential introduction of a MAT. This consultation will help identify existing needs, challenges, and opportunities related to the tax.

The implementation of MAT was a key recommendation in the Tourism Destination Management Plan, adopted by Council in June 2024, as a means to support sustainable tourism growth and investment in the community.

A MAT has recently been adopted in The Town of the Blue Mountains and Town of Collingwood, two nearby communities, and has become an important tool for funding tourism and community development initiatives.

As part of this process, the Town is launching public engagement to gather feedback. The results of this consultation will be summarized and presented to Council to help inform recommendations regarding MAT structure, governance, and implementation.

We encourage you to share your thoughts and insights to help shape the future of tourism and economic development in Wasaga Beach.

What is a Municipal Accommodation Tax (MAT)?

The Municipal Accommodation Tax (MAT) is a fee applied to visitors who stay in commercial accommodations within a municipality. Introduced in Ontario in 2017, the MAT serves as a revenue tool for municipalities to support tourism-related activities and projects.

The implementation of the MAT is governed by O. Reg. 435/17: Transient Accommodation Tax under the Municipal Act, 2001. This regulation outlines the rules and procedures for collecting and remitting the tax.

How Does MAT Work?

• Most Ontario municipalities set the tax at 4%, though rates can vary. For example, Toronto increased its MAT from 4% to 6% in May 2023.
• The tax is collected by accommodation providers at the time of booking or check-in and is remitted to the municipality regularly.
• At least 50% of net MAT revenue must be allocated to an eligible not-for-profit (NFP) tourism entity for tourism promotion and development. The remaining funds are used at the municipality’s discretion.

Who Does the MAT Apply To?

Each municipality that adopts a MAT decides which types of accommodations are subject to the tax. Generally, it applies to stays of 30 days or less in:
✅ Hotels
✅ Motels
✅ Bed & Breakfasts (B&Bs)
✅ Short-term rentals (e.g., Airbnb, VRBO)

Some accommodations are exempt, including:
❌ Hospitals
❌ Post-secondary dormitories
❌ Shelters and treatment centers

What is Not Taxed?

The MAT only applies to the cost of accommodations. Additional services—such as meals, parking, or other hotel amenities—are not subject to the tax.

Who Can Implement a MAT?

All single-tier and lower-tier municipalities in Ontario have the authority to introduce a MAT. As of today, over 40 municipalities have adopted the tax.