Municipal Accommodation Tax (MAT)

Rate

The City of Markham has implemented a mandatory 4% Municipal Accommodation Tax (MAT) effective January 1, 2019, By-law 2018-116.

• The MAT is payable on the purchase price of the room portion of the accommodations provided for a continuous period of 29 consecutive nights or less. Other services, including meeting room rentals, food and beverage, room services, internet and phone charges, are excluded from the tax provided they are itemized separately on the bill
• HST is also payable on the MAT portion.

Exemptions

The MAT is not applicable to the following types of accommodations:

• Every hospital referred to in the list of hospitals maintained by the Minister of Health and Long-Term Care under the Public Hospitals Act and every private hospital operated under the authority of a license issued under the Private Hospitals Act.
• Every long-term care home as defined in subsection 2(1) of the Long-Term Care Homes Act, 2007, retirement home and hospices.
• Treatment centres that receive provincial aid under the Ministry of Community and Social Services Act.
• Every house of refuge, or lodging for the reformation of offenders.
• Every charitable, non-profit philanthropic corporation organized as shelters for the relief of the poor or for emergency.
• Lodgings provided to students by a university, college or post-secondary while the student is registered at and attending the institution.
• Every tent or trailer sites supplied by a campground, tourist camp or trailer park.
• Every accommodation supplied by employers to their employees in premises operated by the employer.
• Every hospitality room in an establishment that does not contain a bed and is used for displaying merchandise, holding meetings, or entertaining.

The City of Markham has implement a mandatory 4% Municipal Accommodation Tax (MAT) effective January 1, 2019. The MAT will apply to the purchase of the accommodations provided for a continuous period of 29 consecutive nights or less. All guest invoices must include a separate line for "Municipal Accommodation Tax" as of January 1, 2019. The four per cent tax applies only on the room cost portion of accommodation of all guest invoices.

Revenues generated from other services, including meeting room rentals, food and beverage, room services, internet and phone charges, are excluded from the tax provided they are itemized separately on the bill.

Frequently Asked Questions

1. When do I start collecting the tax?
   • The MAT must be collected beginning January 1, 2019, and must be applied to accommodations provided for a continuous period of 29 consecutive nights or less.
     
     
2. Is HST applicable on the MAT?
   • The accommodation provider is responsible for collecting and remitting the HST on the entire charge, including the MAT however, it is suggested to contact the Canada Revenue Agency to obtain further clarification if required.
     
     
3. Are any guests exempt from the Municipal Accommodation Tax?
   • Accommodations that are rented for a period of more than 29 consecutive nights
   • Accommodations provided as emergency shelter
   • Accommodations supplied by employers to their employees in premises operated by the employer
     
     
4. Are any hotels charges exempt from the Municipal Accommodation Tax?
   • Revenues generated from other services, including meeting room rentals, food and beverage, room services, internet and phone charges, are excluded from the tax provided they are itemized separately on the bill.
     
     
5. Do I charge the Municipal Accommodation Tax if a guest has booked their stay prior to the implementation of the Municipal Accommodation Tax (January 1, 2019)?
   • If the accommodation was booked and paid for prior to January 1, 2019, the tax will not be applicable. If it was booked before January 1, 2019 but paid for on January 1, 2019 or onwards, the tax is applicable.
     
     
6. How do I remit the MAT that I collected to the City?
   • You must complete the Municipal Accommodation Tax Return Form indicating revenue and MAT collected for the month and remit payment to the City.
     
     
7. When do I have to remit my return to the City on the tax I collected?
   • You are required to submit a Municipal Accommodation Tax Return Form and payment at the end of each month for the tax collected in the previous month.
   • For example: January's MAT return (January 1 to January 31) must be received by February 28.
     
     
8. What happens if I am late in submitting my return?
   • Late payment fees will be charged at a rate of 1.25% on the first day of default and the first of each month until paid.
     
     
9. What if a refund was issued to a guest after submitting the return?
   • Adjustments from prior reporting periods can be made in a future return.
     
     
10. Will the City by auditing the Providers?
    • The City has the authority to inspect and audit. Accommodation providers must maintain records and all documents related to the sale of accommodations to validate the amount of the Municipal Accommodation Tax collected and remitted to the City.

The City of Markham has implement a mandatory 4% Municipal Accommodation Tax (MAT) effective January 1, 2019.

All hotel guest invoices will include a separate line item for "Municipal Accommodation Tax". The four per cent tax applies only on the room cost portion of the accommodation and excludes costs from other hotel services including meeting room rentals, food and beverage, room services, internet and phone charges, are excluded from the tax provided they are itemized separately on the bill.

Frequently Asked Questions

1. What is the amount of the Municipal Accommodation Tax?
   • The MAT is 4% and will be applied to accommodations purchased for a continuous period of 29 consecutive nights or less.
     
     
2. How is it applied to the cost of renting a hotel room?
   • The 4% MAT applies only on the room cost portion of overnight accommodation. All hotel guest invoices will include a separate line for “Municipal Accommodation Tax” as of January 1, 2019
     
     
3. Can I refuse to pay this tax? Is this a mandatory or voluntary tax?
   • No you cannot refuse to pay this tax. The MAT is mandatory and must be paid to the accommodation operator at the same time that you pay for the accommodation.
     
     
4. Do I have to pay the MAT if I booked my hotel prior to the implementation of the Municipal Accommodation Tax (January 1, 2019)?
   • If your accommodation was booked and paid for prior to January 1, 2019, the MAT will not be applicable. If it was paid for on January 1, 2019 or onwards, the tax is applicable.
     
     
5. Under what authority does the City of Markham charge/collect the Municipal Accommodation Tax?
   • The Municipal Accommodation Tax is a mandatory tax imposed by City Council through By-law 2018-116, a By-law to Impose Municipal Accommodation Tax on the purchase of transient accommodation in the City of Markham.
     
     
6. Are any hotels charges exempt from the Municipal Accommodation Tax?
   • Other Hotel services, including meeting room rentals, food and beverage, room services, internet and phone charges, are excluded from the tax provided they are itemized separately on the bill.
     
     
7. What if I have more questions?
   • E-mail us at smanson@markham.ca if you need further assistance.

Payment Due Date

You are required to submit a Municipal Accommodation Tax Return and payment at the end of each month for the tax collected in the previous month.

• Example: January's tax return (January 1 to January 31) must be received by February 28.

Municipal Accommodation Tax Return Form [PDF]

Making Payments

You remit the monthly payment in the following ways:

1. By Electronic Funds Transfer (EFT):
   • To set set up for EFT please email Shane Manson at smanson@markham.ca or 905.415.7514.
   • For payments made by EFT, the form may be submitted by email to smanson@markham.ca or alternatively may be mailed.
     
2. In Person:
   • Address: City of Markham, 101 Town Centre Boulevard, Markham, Ontario, L3R 9W3 — Cashiers (Thornhill Entrance)
     
   • Hours: 8 AM to 5 PM
   • Contact Person: Shane Manson
     

Late Payment Charges

To avoid late payment charges, please ensure that both the Municipal Accommodation Tax Return Form and MAT payment are received by the end of each month for the tax collected in the previous month. A late payment charge of 1.25% will be added on the unpaid amount of an instalment on the first day after the instalment due date and on the first day of each calendar month until paid.

Penalty and interest rates are set by City by-law pursuant to the Municipal Act and cannot be waived or altered. Payments not cleared by your financial institution will result in a service charge being added to your account in accordance with the City's Fees and Charges By-law.