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 organization 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 23 rd 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

MAT Trailer Camp Municipality Implementation B&B STR Parks Grounds 01-Aug- Ottawa 01-Jan-18 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

MAT Municipality 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 DMP in place Hamilton MAT Process in 2020 Niagara on the Lake Revisiting MAT City of Burlington Scheduled for 2020 St Catharines Discussion

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