The Municipal Accommodation Tax (MAT) is a 4% tax imposed on accommodation rentals fewer than 30 days. The 4% fee applies to stays at hotels, motels, motor hotels, lodges, inns, resorts, bed and breakfasts, or other lodging including those sold online. This tax is not discretionary. It applies only to the room portion of the cost and must be paid to the accommodation provider at the same time the customer pays for the accommodations.
If you are a short term Accommodator and are not registered to remit Municipal Accommodation Tax with the City of Belleville please follow the link; Municipal Accommodation Tax Establishment form
If you are a short term Accommodator please follow the link Municipal Accommodation Tax Remittance Form to submit your monthly remittances.
All funds collected from MAT will be used to support tourism projects and initiatives.
Frequently Asked Questions (FAQ)
What is the Municipal Accommodation Tax?
The Municipal Accommodation Tax (MAT) is a 4% tax imposed on accommodations of fewer than 30 days. The commencement date of the MAT was July1, 2019. The purpose of this tax is to support tourism development in the City of Belleville.
What is the authority to charge the MAT?
On June 25, 2019 Belleville City Council passed By-law No. 2019-126; a by-law to establish the Municipal Accommodation Tax. This by-law provides for mandatory collection and remittance of the MAT. As part of the 2017 Provincial Budget, the Province of Ontario granted municipalities the authority to implement a tax on short term accommodations. Section 400.1 of the Municipal Act, 2001 and Ontario Regulation 435/17 authorize the establishment and collection of the MAT.
Who does the MAT apply to?
The MAT is applicable to all accommodations under 30 days at hotels, motels, bed and breakfasts, hostels, dwelling units.
How is the MAT applied to the purchase price of accommodations?
The 4% tax is only applied to the purchase price of the accommodation (i.e. room fee) and it does not apply to amenity fees or service charges. Charges exempt from the MAT are amenity fees and service charges including meals, room incidentals, and valet services or parking provided they are separately itemized on the invoice. Hospitality rooms and meeting room that do not contain a bed are not considered accommodations.
Why is the Harmonized Sales Tax (HST) charged on the Municipal Accommodation Tax?
The accommodation provider is responsible for collecting and remitting the HST on the room charge and on the Municipal Accommodation Tax if registered for HST. HST is remitted directly to the Canada Revenue Agency. In order for the MAT to be exempt from HST a request for the exemption must come from the province to CRA which has never occurred.
Is the payment of the MAT optional?
No, the MAT is mandatory. It must be paid at the same time you are paying the accommodation provider. There are no exemptions.
Do I still need to pay the MAT if I do not show up for the reservation?
If you are charged for the accommodation whether or not you actually occupy it, then MAT will apply. If you do not cancel your room reservation and you are charged for accommodation (no-show included) the MAT will be charged. If you are not charged for the accommodation but subject to a cancellation fee, the MAT would not apply.
Are long-term contracts for room rentals with businesses that exceed 30 days exempt?
Yes, the purchaser, per the by-law, is the person or business who remits money for the room and therefore the MAT would not apply for a contract of 30 days or more. MAT is payable for the first 30 consecutive days only.
What if I have existing contracts with businesses with a fixed room rate?
MAT applies to accommodations purchased on or after July 1, 2019. The MAT applies on corporate accommodation contracts.
Exemptions
The following are exempt from charging the MAT under By-law 2019-126:
- Accommodations for a continuous period of more than 30 nights (MAT is payable on stays up to and including 30 consecutive nights – once night 31 has been reached, the MAT is not payable on nights 31+)
- The Crown, any agency of the Crown in right of Ontario, or any officer under the authority of the Lieutenant Governor in Council or a member of the Executive Council
- Any board as defined in subsection 1 (1) of the Education Act
- Universities and colleges
- Hospitals, long-term care homes, retirement homes, homes for special care (as defined by their corresponding Act noted in the by-law), non-profit hospice and treatment centres that receive provincial aid under the Ministry of Community and Social Services Act
- Any person or entity defined exempt under the Municipal Act
- House of refuge or lodging for the reformation of offenders
- Shelter or emergency shelter
- Tent or trailer sites supplied by a campground, tourist camp or trailer park
- Accommodations supplied by employers to their employees in premises operated by their employer
- Premises owned or operated by the City of Belleville
For more information please contact the Economic & Strategic Initiatives department