Municipal Accommodation Tax (MAT)

 Monthly remitters

A provider shall remit the amount collectible for the previous month on or before the last day of every month, and shall submit the Municipal Accommodation Tax Return Form (Schedule B) to the City at that time. (For example, the September MAT return form and remittance is due to the City on or before Oct. 31)

 Quarterly remitters

A Provider shall remit the amount for the previous quarter on or before the last day of the month following the end of the quarter and shall submit the Municipal Accommodation Tax Return Form (Schedule B) to the City at that time.

• Q1 (January – March) is due on or before April 30
• Q2 (April – June) is due on or before July 31
• Q3 (July – September) is due on or before October 31
• Q4 (October – December) is due on or before January 31

 General information

What is the Municipal Accommodation Tax?

The Municipal Accommodation Tax, or MAT, is a 4% tax charged on the cost of fixed roof transient accommodations sold for a continuous period of less than 30 days within the boundaries of the City of Thunder Bay.

The tax applies to all accommodation sold for a continuous period of less than 30 days in a hotel, motel, lodge, inn, hostel, bed and breakfast, dwelling unit or any place an accommodation is provided.

When do I start charging the Municipal Accommodation Tax?

Effective September 1, 2018.

Is this a mandatory or voluntary tax?

Mandatory. The Municipal Accommodation Tax must be collected by the accommodation provider at the same time customers are charged for the booking.

What is the authority to charge the Municipal Accommodation Tax?

On August 13, 2018, Thunder Bay City Council passed By-Law, 74/2018 which provides for mandatory collection and remittance of the Municipal Accommodation Tax.  The municipality is authorized per section 400.1 of the Municipal Act, 2001 and Ontario Regulation 435/17 to establish and to collect the tax.

What happens with the money collected through the Municipal Accommodation Tax?

The tax will generate funding to promote tourism within the City of Thunder Bay. 50% of the net revenue from the Municipal Accommodation Tax will go to tourism promotion and development with a focus on attracting more visitors to the City through sports and cultural events, conventions, enhanced attractions and outdoor activities.

A governance structure for the investment of these funds will be established by the Community Economic Development Commission (CEDC) in consultation with industry. This process will take time. The first step is a legal agreement between the City and CEDC. The CEDC expects the governance structure to be in place by the end of 2018 before any funding is expended in 2019.

The other 50% of the net revenue will be retained by the City of Thunder Bay, earmarked for infrastructure projects that promote tourism and that benefit residents and visitors.

What hotel/accommodation charges are exempt from the Municipal Accommodation Tax?

• Amenity fees and service charges including meals, room incidentals, valet services or parking provided they are separately itemized on the invoice.
• Hospitality rooms and meeting rooms that do not contain a bed are not considered accommodations.

Are long-term contracts for room rentals with businesses that exceed 30 days exempt?

Yes, the purchaser, per the By-law, is the person or business who remits money for the room and therefore the Municipal Accommodation Tax would not apply for a contract of 30 days or more. 

What if I have existing contracts with businesses with a fixed room rate?

Municipal Accommodation Tax applies to accommodations purchased on or after September 1, 2018. If payment occurs on or after September 1st for accommodation occupied on or after September 1st, Municipal Accommodation Tax applies even if provided through a corporate contract.

Invoicing information

Do I need to show the Municipal Accommodation Tax on the invoice or receipt?

Yes, every bill, receipt, invoice or similar document for the purchase of accommodation must have a separate item identified as “Municipal Accommodation Tax” showing the rate at which the Municipal Accommodation Tax is calculated (4%) and the amount of the Municipal Accommodation Tax charged.

Is the Harmonized Sales Tax (HST) charged on the Municipal Accommodation Tax?

Yes, if the accommodation provider is registered for HST. The accommodation provider is responsible for collecting and remitting the HST on the room charge and on the Municipal Accommodation Tax. HST is remitted directly to the Canada Revenue Agency. 

What revenue does the Municipal Accommodation Tax apply to if I charge a fee that includes accommodation and meals (i.e. bed and breakfast)?

It is the responsibility of the accommodation provider to allocate the revenue from the accommodation charge separate from other services, amenities or charges on the invoice and collect and remit the Municipal Accommodation Tax on the accommodation portion of the fees. If the fees are not separately listed on the invoice, the Municipal Accommodation Tax will apply to the entire invoice.

What happens if guests do not show up for their reservation?

The Municipal Accommodation Tax is to be collected and remitted if the accommodation is charged.  If the guest is not charged but is required to pay a cancellation fee, the Municipal Accommodation Tax would not apply to the cancellation fee.

Collection and remittance

What is the purpose of the Accommodation Establishment Information Form?

The Accommodation Establishment Information Form (Schedule A – BL74/2018) will be used by the City to set up your establishment name, address and contact information correctly in our accounting system and provide you with a customer ID. This customer ID will then be used to associate your monthly remittances and payments with the proper establishment.

How do I report and remit the Municipal Accommodation Tax that I collected?

Complete the City of Thunder Bay’s Municipal Accommodation Tax Return Form (Schedule B – BL74/2018).

See the form for instructions and information about reporting periods, calculations, exemptions and adjustments, payment and submission.

What if a refund was issued to a guest after submitting the return?

Adjustments from prior reporting periods can be made in the period the refund was returned.

What if I did not collect any Municipal Accommodation Tax in the reporting period?

If you did not sell any accommodations subject to the Municipal Accommodation Tax and thus no Municipal Accommodation Tax was collected, you will still be required to submit the Municipal Accommodation Tax Return indicating that no Municipal Accommodation Tax was collected in the reporting period.

 What is the Municipal Accommodation Tax (MAT)?

The tax is added to the price paid for a room booked at a fixed roof accommodation in the City of Thunder Bay as required by law. The rate is 4% of the total room cost.

The tax applies to all  accommodation sold for a continuous period of less than 30 days in a hotel, motel, lodge, inn, hostel, bed and breakfast, dwelling unit and other place transient accommodation is provided operating within the City of Thunder Bay. 

The tax is effective September 1, 2018.

How is the Municipal Accommodation Tax applied to the purchase price of accommodations?

The amount of the tax must be clearly identified as a line item on your bill or invoice as “Municipal Accommodation Tax” The amount is 4% of the total accommodation cost. 

Are other charges by accommodation providers exempt from the Municipal Accommodation Tax? 

 Is the payment of the Municipal Accommodation Tax optional?

No. The Municipal Accommodation Tax is mandatory as per City By-law. It must be paid at the same time you complete the purchase, in full, for your stay.

If I’m travelling for medical purposes do I have to pay the MAT?

The tax will generate funding annually to promote tourism within the City of Thunder Bay. 50% of the net revenue from the Municipal Accommodation Tax will go to tourism promotion and development with a focus on attracting more visitors to the City through sports and cultural events, conventions, enhanced attractions and outdoor activities.

The other 50% of the net revenue will be retained by the City of Thunder Bay, earmarked for infrastructure projects that promote tourism and that benefit residents and visitors.