Municipal Accommodation Tax

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Summary

Perhaps the Municipality of Temagami could consider implementing a Municipal Accommodation Tax as permitted under Ontario Regulation 435/17 "Transient Accommodation Tax" (https://www.ontario.ca/laws/regulation/170435).

The tax could be applied to local accommodations such as motels, short-term rentals, and houseboats. Overnight accommodations for persons under 18 could be exempt so as to keep costs down for summer camps.

The Municipal Accommodation Tax is set at the following rates in other municipalities: Temiskaming Shores (5%), North Bay (4%), Sudbury (6%), Owen Sound (4%), Toronto (6%).

Income from the tax, after expenses, could be split 50/50 between the municipality and TREDCO.

Like other municipalities, perhaps the 50% to TREDCO could be administered as part of a fund to supports events, infrastructure and product development, similar to what North Bay does with their Tourism Development Fund (https://www.tourismnorthbay.com/more/tourism-development-fund/).


Who charges a Municipal Accommodation Tax?

Summary of municipalities with Municipal Accommodation Taxes

Municipal Accomodation Tax
Municipality Tax Beneficiary of 50% Grant program
Toronto 6% (was 8.5% for FIFA) Tourism Toronto
Thunder Bay 5% Thunder Bay Community Economic Development Commission (CEDC)
South Bruce 4% South Bruce Municipal Accommodation Tax Association
Owen Sound 4% Owen Sound Chamber of Commerce Owen Sound Tourism Development Fund
Sudbury 6% Greater Sudbury Community Development Corporation Tourism Development fund
Temiskaming Shores 5% Temiskaming Shores Development Corporation (TSDC) Tourism Grant Program
North Bay 4% 60% to Tourism North Bay Tourism Development Fund

Supporting details are below.

Toronto

  • Municipal Accommodation Tax (MAT) (Toronto)
    • "The MAT is subject to HST. You will need to pay this HST, along with your other HST payments, to the Canada Revenue Agency."
  • In 2024, it is a bit unclear what the finances were, but the City of Toronto transfered $18 million to Tourism Toronto.
  • "Effective June 1, 2025 to July 31, 2026, the City of Toronto will temporarily increase the mandatory Municipal Accommodation Tax (MAT) rate on transient accommodations from 6 per cent to 8.5 per cent in accordance with Bylaw 1259-2024"
  • On November 4, 2024, the temporary 2.5% increase was expected to generate "additional $56.6 million in revenue." It is likely that all of this was used for FIFA.
    • "In September 2018, the council of the day adopted a four per cent tax on accommodations in North Bay and soon after a four-year agreement took effect between the City of North Bay and the Tourism North Bay Association."

Thunder Bay

  • Municipal Accommodation Tax (MAT) (Visit Thunder Bay)
    • "By-law 74/2018 was approved by Thunder Bay City Council to implement a mandatory Municipal Accommodation Tax (MAT) at a rate of 5% effective September 1, 2018."
    • "What happens with the money collected through the Municipal Accommodation Tax?"
      • "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."
  • Muncipal Accommodation Tax (City of Thunder Bay)
  • "CEDC Tourism Development Fund Provides $445,000 to the 2025 Scotties Tournament of Hearts," February 13, 2025, gothunderbay.ca
    • "The CEDC and Tourism Thunder Bay administer 50% of the total collected tax revenues in support of the continued growth of tourism focused events and products."

South Bruce

  • Municipal Accommodation Tax (Township of South Bruce):
    • The tax is 4%
    • "a room or suite of rooms containing one or more beds or cots, whether in a hotel, motel, boarding, lodging, or rooming house, bed and breakfast or other establishment providing lodging"
    • "in a tent, trailer, vehicle, recreational vehicle or other structure on a campsite or in a campground, regardless of whether the tent/trailer/vehicle/recreational vehicle/structure is brought to the campsite/campground by the patron or if it is existing on the campsite or in the campground "
  • "South Bruce Peninsula Saw Increase In Accommodation Tax Collected In 2023," Claire McCormack, Bay Shore Broadcasting, February 6, 2024.

Owen Sound

  • Municipal Accommodation Tax (City of Owen Sound)
    • The tax is 4%
    • "The revenue is split evenly between the City of Owen Sound and the MAT Stakeholder Committee. The Stakeholder Committee, which includes both voting and non-voting representatives from local tourism-related businesses and organizations, oversees its share of the funds. The Owen Sound & District Chamber of Commerce serves as the not-for-profit organization that administers the funds on behalf of the Stakeholder Committee."
    • " Are other municipalities collecting a MAT?"
      • "Yes. More than a dozen towns and cities in Ontario have a Municipal Accommodation Tax, including South Bruce Peninsula, Northern Bruce Peninsula, Ottawa, Toronto, London, Waterloo Region, Windsor, Oakville, Kingston, Barrie and Sudbury."
  • Owen Sound Tourism Development Fund
    • "The Municipal Accommodation Tax (MAT) collected in Owen Sound is divided according to the MAT Agreement. The revenue is split evenly between the City of Owen Sound and the MAT Stakeholder Committee. The Stakeholder Committee, which includes both voting and non-voting representatives from local tourism-related businesses and organizations, oversees its share of the funds. The Owen Sound & District Chamber of Commerce serves as the not-for-profit organization that administers the funds on behalf of the Stakeholder Committee."

Sudbury

  • Municipal Accommodation Tax (Sudbury)
    • The tax is 6%
    • "After deducting costs associated with administration and collection of the fee, half of the net revenue will be used to promote and grow the tourism industry in Greater Sudbury through The City of Greater Sudbury Community Development Corporation (operating as the GSDC)."
  • Tourism Development Fund
    • "The Tourism Development Fund (TDF) is supported through funds collected annually by the City of Greater Sudbury through the Municipal Accommodation Tax (MAT)."

Temiskaming Shores

North Bay

  • Municipal Accommodation Tax (North Bay)
    • The tax is 4%
    • "40% of the net revenue from the MAT will go to the municipality to be applied to various infrastructure investments which support tourism assets. The other 60% of the net revenue will go to Tourism North Bay. As an eligible tourism entity Tourism North Bay will administer the funds for tourism promotion and development, including a focus on attracting people to the city, support bid opportunities, and more."
  • "City poised to re-up hotel tax for 5 more years," Stu Campaigne, Bay Today, March 25, 2024.
  • Tourism Development Fund
    • "The Tourism Development Fund (TDF) program is supported by the revenues collected by the City of North Bay through the administration of the Municipal Accommodation Tax (MAT)."


Resources

  • Searching ontario.ca for "Municipal Accommodation Tax" yields these hits:
The amount "is 50 per cent of the amount determined using the formula,"
A – B
in which,
“A” is the revenue from the tax received by the municipality in respect of the fiscal year, and
“B” is the municipality’s reasonable costs of collecting and administering the tax that are attributable to the fiscal year.The amount is not more
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