Ontarios Municipal Accommodations Tax -MAT Ontario Destination - - PowerPoint PPT Presentation

Ontario’s Municipal Accommodations Tax -MAT

Ontario Destination Marketing Programs (DMP)

• Industry Solution to an Industry Problem

– Started in Toronto in 2004 followed by Ottawa – 2010: 14 Ontario destinations

• Challenges

– Competition Bureau of Canada – Challenged by Class Case Legal suits – Inconsistencies among industry and destinations

• A need for a sustainable model

Municipal Accommodations Tax -MAT

• Announcement in the 2017-18 provincial budget
• Permissive authority to municipalities to

implement a new municipal sales tax on transient lodging (providers of transient accommodation)

– Exception: university or a college of applied arts and technology or post-secondary institution

Municipal Accommodations Tax -MAT

• Municipalities that adopt a hotel tax without a an

existing destination marketing program

– Required to share at least 50 per cent of their hotel tax revenue with a not-for-profit eligible tourism

• rganization for the exclusive purpose of promoting

tourism. – “eligible tourism entity” means a non-profit entity whose mandate includes the promotion of tourism in Ontario or in a municipality – “promotion of tourism” and “promoting tourism” include the development of tourism products.

Municipal Accommodations Tax -MAT

Regulations provided on Nov 23rd 2018

• Provide municipalities with flexibility

– to determine the design, administration and collection of the tax – tax amount – share of the tourism spend

Municipal Accommodation Tax (MAT)

• Developed to grow the economic impact of

the tourism industry in Ontario

• Intended to provide strategic access to funds

to augment existing investments into tourism marketing and product development

Municipal Accommodations Tax -MAT

• Municipalities in Ontario have embraced MAT
• Larger tourism budgets will steal market share

from the others

• Competition between municipalities is now fierce
• Its not about not wanting to apply a MAT to one’s

hotel rate

– About evaluating your market

Advocating for Changes to the Provincial Legislation

• Clarity to MAT spending
• Charge MAT to University /College Transient

travel

• Hotel Industry Involvement
• Reimburse Credit Card processing fees

charged on MAT

Scan of MAT in Ontario

Municipality MAT Implementation B&B STR Trailer Parks Camp Grounds Ottawa 01-Jan-18 01-Aug- 18 EXEMPT EXEMPT Toronto 01-Apr-18 01-Jul-20 EXEMPT EXEMPT Mississauga 01-Apr-18 01-Oct-18 EXEMPT EXEMPT Brockville 01-May-18 01-Sep-19 Cornwall 01-Jun-18 01-Jun-19 EXEMPT EXEMPT Sudbury 01-Jul-18 01-Sep-18 EXEMPT EXEMPT Kingston 01-Aug-18 in talks Sault Ste. Marie 01-Sep-18 in talks EXEMPT Thunder Bay 01-Sep-18 EXEMPT EXEMPT Kenora 01-Sep-18 EXEMPT EXEMPT London 01-Oct-18 EXEMPT in talks EXEMPT EXEMPT Windsor 01-Oct-18 01-Oct-18

Municipality MAT Implementation B&B STR Trailer ParksCamp Grounds Niagara Falls 01-Jan-19 in talks EXEMPT EXEMPT Oakville 01-Jan-19 Markham 01-Jan-19 EXEMPT EXEMPT Barrie 01-Jan-19 01-Jan-19 EXEMPT EXEMPT Cochrane 01-Jan-19 EXEMPT EXEMPT Fort Frances 01-Jan-19 EXEMPT EXEMPT North Bay 01-Feb-19 EXEMPT Vaughan 01-Apr-19 01-Apr-20 Huntsville 01-Apr-19 EXEMPT in talks EXEMPT EXEMPT Timmins 01-May-19 01-May-19 EXEMPT Town of Marathon 01-Jun-19 EXEMPT EXEMPT

Municipality MAT Implementation B&B STR Trailer ParksCamp Grounds Waterloo Region 01-Jul-19 EXEMPT 01-Jan-20 EXEMPT EXEMPT Belleville 01-Jul-19 EXEMPT EXEMPT City of Quinte West 01-Jul-19 Peterborough 01-Oct-19 EXEMPT EXEMPT EXEMPT EXEMPT Sioux Lookout 01-Jan-20 01-Jan-20 EXEMPT EXEMPT City of Dryden 01-Jan-20 EXEMPT EXEMPT Point Edward * 01-Jan-20 EXEMPT EXEMPT Sarnia* 01-Apr-20 EXEMPT EXEMPT Lambton County* Set for 01-Apr-20 City of Orillia 01-Apr-20 EXEMPT EXEMPT Hamilton DMP in place MAT Process in 2020 Niagara on the Lake Revisiting MAT City of Burlington Scheduled for 2020 St Catharines Discussion

Thank You!

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