The City of Port Colborne passed the By-Law to Establish a Municipal Accommodation Tax to implement a mandatory Municipal Accommodation Tax (MAT) in accordance with Ontario Regulation 435/17 and section 400.1 of the Municipal Act, 2001, S.O. 2001 c. 25.
Effective February 1, 2025, the MAT is applied at a rate of four percent (4%) to the purchase of transient accommodations provided for a continuous period of 30 days or less.
About the MAT
The MAT is a mandatory tax levied on the purchase price of transient accommodation within the City of Port Colborne. It must be listed as a separate line item on the guest's bill, invoice or receipt.
The MAT is applied at a rate of four per cent (4%) for every night of occupancy during a continuous period of 30 days or less. This rate is consistent with the rates adopted by many Ontario municipalities that have implemented a Municipal Accommodation Tax.
The MAT is a mandatory tax and guests cannot refuse to pay it. Payment of the MAT should be made at the time when the accommodation is purchased.
Purpose of the MAT
The provincial government legislated the transient accommodation tax in 2017 as a way to give municipalities and tourism entities the financial means to continue promoting and developing tourism. The City of Port Colborne recognizes the MAT as a vital source of funding, as it alleviates the financial burden on local taxpayers to fund the municipality's tourism program and strategy.
The MAT is not levied on residents* or applicable to businesses, with the exception of accommodation providers.
Provincial legislation requires municipalities to share at least 50% of applicable MAT revenue with an eligible tourism entity for the purpose of promoting tourism. The City of Port Colborne and the local destination marketing organization (DMO), Niagara's South Coast Tourism Association, will utilize this revenue for investments in enhanced marketing and promotion, event support, and tourism-related infrastructure or development.
*Port Colborne residents are exempt from the tax unless they stay overnight at an accommodation provider within the city.
Accommodations subject to the MAT
The tax applies to lodging (i.e., room or space used for sleeping accommodation) in a hotel, motel, motor hotel, campground, campsite, recreation vehicle, park model recreation vehicle, mobile home park, trailer park, lodge, inn, resort, hostel, bed and breakfast, short-term rental accommodation, boat or boat house, dwelling or dwelling unit, commercial resort unit, or any other establishment that is identified in the MAT by-law. [PDF/4.4MB]
The MAT is generally applied on a per-room basis, regardless of the number of beds or occupants sleeping in a room.
How the MAT is applied
HST is charged on top of the tax. The MAT is deemed part of the consideration for the supply of transient accommodation. Section 154 of the Excise Tax Act (R.S.C., 1985, c. E-15) outlines the items that are included in the base for HST. The accommodation provider is responsible for collecting and remitting both the HST and the MAT on the purchase price of the accommodation.
The tax applies only to the purchase price (or room rate) of the accommodation, and it should not be applied to amenity, ancillary or other service fees or charges (e.g., meeting room rentals, parking, food and beverage, internet, phone charges, etc.).