Municipal Accommodation Tax (MAT)

Newmarket along with 50 other communities in Ontario implemented a Municipal Accommodation Tax (MAT) in January 2025.

As outlined by the Province of Ontario, 50 per cent of revenues collected from MAT go to the municipality and 50 per cent are dedicated to a tourism-based organization. The Town will be moving ahead with MAT next year, which will see a 4 per cent charge added to hotel stays and short-terms rentals in the community. On average, the MAT would be between $6–7 for accommodations based on a fee of $150 per night. This is not a tax paid for by Newmarket residents.

The MAT collected will be managed by a Municipal Services Corporation — a tourism based non-profit organization overseen by the Town of Newmarket.

Section 400.1 of the Municipal Act, 2001, S.O, c.25, allows municipal council to pass bylaws that impose a tax for accommodations within the municipality. These amendments were introduced as part of the 2017 Provincial Budget and received Royal Assent on May 17, 2017.

Ontario Regulation 435/17: Transient Accommodation Tax, under the jurisdiction of the Municipal Act, 2001 came into effect December 1, 2017, allowing municipalities to levy a Municipal Accommodation Tax.

The Town of Newmarket Council approved By-Law 2024-68 [PDF/185KB], establishing a mandatory MAT be collected as of January 1, 2025, for all hotel and short-term rental accommodations in Newmarket.

“Accommodation” means Lodging, and the right to use Lodging, that is provided for consideration, whether the lodging is used and includes hotel accommodation and short-term rental accommodation.

“Hotel accommodation” means lodging in a room containing one or more beds in a hotel, motel, hostel, motor hotel, lodge, bed and breakfast, club, condo hotel, or portion of a large multi-use complex used as a hotel, for a period of a minimum of four hours and a maximum of 29 consecutive days.

“Short-term rental accommodation" means all or part of a dwelling unit used to provide temporary sleeping accommodations for any rental period that is less than 28 consecutive days in exchange for payment. This includes a bed and breakfast but excludes hotels, motels and accommodations where there is no exchange for remuneration.

A Purchaser shall, at the time of purchasing a hotel accommodation or a short-term rental accommodation pay the MAT in the amount of four per cent of the purchase price of the accommodation. The MAT is subject to HST. You will need to pay this HST, along with your other HST payments, to the Canada Revenue Agency.

MAT is payable on the purchase price of the room portion of rental accommodations. Other services such as meeting rooms, food and beverage, room services, internet and phone charges are excluded from the MAT provided they are itemized separately on the invoice.

See 'Filing a MAT Report and Making Payments' section below for more information on how to make a MAT Payment.

The MAT applies to a lodging in a room containing one or more beds in a hotel, motel, hostel, motor hotel, lodge, bed and breakfast, club, condo hotel, or portion of a large multi-use complex used as a hotel, for a period of a minimum of 4 hours and a maximum of 29 consecutive days.

Reporting due dates

The MAT report and payment are due monthly, within 15 days of the end of the previous month, according to the following schedule:

See 'Filing a MAT Report and Making Payments' section below for more information on how to make a MAT Payment.

The MAT applies to all, or part of a dwelling unit used to provide sleeping accommodation for any rental period that is less than 28 consecutive days in exchange for payment, including existing bed and breakfasts.

Reporting due dates

The payment is due on a quarterly basis within 15 days of the end of the previous quarter, according to the following schedule:

The MAT does not apply to the following accommodations:

• An accommodation rented by a hotel provider for a continued stay over 29 nights.
• An accommodation rented by a short-term rental provider for a stay over 27 nights.
• The Crown and agencies of the Crown.
• Universities, colleges and school boards.
• Every board as defined in subsection 1(1) of The Education Act.
• Hospitals, long-term care homes and treatment centres.
• Any retirement home as defined in the Retirement Home Act, 2010.
• Charitable, non-profit philanthropic corporations organized as shelters for the relief of the poor or for emergency.
• Any Person or entity as prescribed by regulation under the Municipal Act,2001 as exempt from payment of Municipal Accommodation Tax.
• House of refuge or lodging for the reformation of offenders.
• Tent or trailer sites supplied by a campground, tourist camp or trailer park.
• Complimentary rooms supplied by employers to their employees on premises operated by the employer.
• Any hospitality room in an establishment that does not contain a bed and is used for displaying merchandise, holding meetings, holding hearings, or entertaining.
• In premises owned or operated by the Town of Newmarket.

The Town of Newmarket has designated the Ontario Restaurant Hotel Motel Association (ORHMA) as its agent to collect MAT from accommodation providers and remit it to the Town.

Every hotel and short-term rental provider in the Town of Newmarket must file a MAT remittance report whether any MAT was collected during the reporting period.

For access and information on how to remit reports and payments, contact ORHMA by email mat@orhma.com or call 905-361-0268.

Interest and penalties apply on any overdue MAT payment at a monthly rate of 1.25 per cent from the first day after the tax payment is due. After that time, interest will apply each month on the principal amount owing during the default period at an annual rate of 15 per cent.

The Provider shall pay any fee or charge established in accordance with the Town of Newmarket Corporates Service Fees and Charges Bylaw, as amended, for any late filings, dishonoured payments or other matters.

The MAT is subject to HST. Therefore, you need to charge HST on MAT, and you will need to pay this HST and your other HST payments to the Canada Revenue Agency.

Sample calculation of the MAT and HST:

• Total room charge/rate: $100
• MAT 4 percent: $4
• Net total of rooms charges and MAT: $104
• HST 13 percent: $13.52
• Total: $117.52

The MAT applies to:

• A hotel accommodation used for a period of a minimum of 4 hours and a maximum of 29 consecutive days.
• A short-term rental accommodation for any rental period that is less than 28 consecutive days in exchange for payment.

All hotel accommodation and short-term rental accommodation guest invoices will include a separate line for "Municipal Accommodation Tax" as of January 1, 2025. The four per cent tax applies only to the room cost portion of overnight accommodation and excludes costs from other services, including meeting room rentals, parking, food and beverage, room services, internet and phone charges, provided they are itemized separately on the bill. The MAT is subject to HST.

If your accommodation was booked and paid for prior to January 1, 2025, the MAT will not be applicable. If it was paid for on January 1, 2025, or onwards, the tax is applicable.

If you are not charged, but are required to pay a cancellation fee, the MAT would not apply to the cancellation fee.

The Town of Newmarket's Municipal Accommodation Tax (MAT) was passed by Newmarket Council in 2024 and came into effect on January 1, 2025.

The Town of Newmarket implemented the Municipal Accommodation Tax in accordance with Ontario Regulation 435/17: Transient Accommodation Tax.

The MAT rate is 4%, consistent with other jurisdictions in Ontario. The MAT applies on the purchase price of hotel, motel and short-term rental stays in the Town of Newmarket.

The MAT tax is payable on the purchase price of the room portion of rental accommodations. Other services such as meeting rooms, food and beverage, room services, internet and phone charges are excluded from the MAT provided they are itemized separately on the invoice.

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 MAT. The HST is remitted directly to the Canada Revenue Agency.

The MAT is a mandatory charge that is included in the accommodation payment at the time of booking with the hospitality operator.

If your accommodation was booked and paid for prior to January 1, 2025, the MAT will not be applicable. If it was paid for on January 1, 2025 or onwards, the tax is applicable.

The MAT 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 MAT would not apply to the cancellation fee.

No. This tax will only be paid by visitors making accommodation bookings at Newmarket-based hotels, motels, bed and breakfast, and short-term rental accommodations.

Funds raised will be used for the following but are not limited to:

• Significantly increased support and resources for the tourism sector to remain competitive.
• Increased potential to draw tourists to experience all that Newmarket has to offer including award-winning events and a strong culinary scene.
• Increased tourism marketing efforts that could be leveraged to coincide with traditionally slow periods for the hospitality sector.

The MAT represents a continued investment in tourism and marketing is aligned with the Town’s community branding initiative to further differentiate Newmarket as a top community within the GTA and throughout Ontario.

Newmarket along with 50 other communities in Ontario implemented a Municipal Accommodation Tax (MAT) beginning in January 2025.