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.