Municipal Accommodation Tax


At its meeting of December 10, 2018, Sault Ste. Marie City Council approved By-law 2018-218, a by-law to implement a 4% Municipal Accommodation Tax (MAT) effective January 1, 2019 in the City of Sault Ste. Marie.

The 4% fee will be applied to accommodations less than 30 consecutive days and includes accommodations at hotels, motels, motor hotels, lodges, inns, resorts, bed and breakfasts or any place an accommodation is provided.

The MAT applies to the accommodation charge and does not apply to other associated charges, such as meals or room incidentals, provided that these amounts are itemized separately on the invoice.

Contact Information

Forms for Accommodation Providers

Frequently Asked Questions for Accommodation Providers

General Information

Is the MAT mandatory or voluntary?

Mandatory. The Municipal Accommodation Tax must be collected by the accommodation provider at the same time customers are charged for the booking.

When do I start collecting the MAT?

The MAT must be collected beginning on January 1, 2019.

What is the authority to charge the MAT?

The municipality is authorized per section 400.1 of the Municipal Act, 2001 and Ontario Regulation 435/17 to establish and collect the MAT. On December 10, 2018 Sault Ste. Marie City Council approved By-law 2018-218, which provides for mandatory collection and remittance of the Municipal Accommodation Tax.

What happens with the money collected through the MAT?

The tax will generate funding to promote tourism within the City of Sault Ste. Marie. As per the legislation, the not-for-profit tourism organization funded directly or indirectly from an existing Destination Marketing Fee (DMF) will receive a share of the hotel tax revenue in an amount that matches the total revenue generated by the DMF program in place prior to the new tax being implemented. A governance structure will be put in place through a memorandum of understanding with the Sault Ste. Marie Economic Development Corporation, who is the entity funded indirectly from the DMF. This equates to approximately 60% of the estimated revenue generated, after administration fees.

The remaining 40% be retained by the City for tourism promotion and development, to be used as Council directs.

Applicability and Exemptions

What accommodation charges are exempt from the MAT?

Amenity fees and service charges including meals, room incidentals, valet services or parking are exempt if they are separately itemized on the invoice. Cots and crib rentals are not exempt from the MAT.

Hospitality rooms and meeting rooms that do not contain a bed are not considered accommodations.

What accommodations are exempt from the MAT?

Accommodations 30 consecutive days or more.

Accommodations provided by a university or college that are specific to enrolments counted for the purposes of calculating annual operating grant entitlements from the Crown.

Accommodations provided by long term care facilities and retirement homes as defined in subsection 2(1) of the Long-Term Care Homes Act, 2007 or the Retirement Homes Act, S.O. 2010, c.11.

Accommodations provided at tent and trailer sites.

Is the MAT applicable to guests that do not show up for their reservation?

If a guest is charged for accommodation, including no-shows, the MAT is to be collected and remitted. If the guest is not charged for the accommodation but is required to pay a cancellation fee, the MAT would not apply to the cancellation fee.

Can commission paid to a third party who collected the booking be deducted from the room revenue when calculating the MAT?

No, the revenue to be used to calculate the MAT is the purchase price of the accommodation. Costs incurred to secure or provide the accommodation are not deductible.

Invoicing Information

Does the MAT need to appear on the invoice or receipt?

Yes, every bill, receipt, invoice or similar document for the purchase of accommodation must have a separate item identified as "Municipal Accommodation Tax" showing the rate at which the MAT was calculated (4%) and the amount of the MAT charged.

Is the Harmonized Sales Tax (HST) charged on the Municipal Accommodation Tax?

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 (4% MAT + HST). HST is remitted directly to the Canada Revenue Agency.

Is MAT charged for first 29 days and not on 30 days onward for stays greater than 30 days?

No, the entire stay is exempt from the MAT.

Transition Information

Is the MAT charged if a guest has booked their stay prior to January 1, 2019, when the MAT is implemented?

If the accommodation was booked and paid for prior to January 1, 2019 the MAT is not applicable.

If the accommodation was booked before January 1, 2019 but paid for on or after January 1, 2019, the MAT is to be charged, collected and remitted.

If a guest's stay begins prior to January 1, 2019 and ends after January 1, 2019, is the MAT charged when their stay begins?

The MAT must be charged starting January 1, 2019 only.

The MAT is not applied to any nights prior to January 1, 2019.

If a guest puts a deposit to hold a room prior to January 1, 2019 for a booking January 1, 2019 or later, does the MAT apply?

Yes, if the final payment for a room occurs on or after January 1, 2019 the MAT applies to the accommodations rate regardless of any deposits made.

When is the first remittance due?

The MAT collected for the month of January, 2019 must be reported and remitted by the last day of the month following, February 28, 2019.

Collections and Remittances

How is the MAT that is collected reported?

You must complete the MAT Return Form on a monthly basis. These can be submitted via email at

You are required to remit at the end of each month for the MAT collected in the previous month. For instance, the MAT Return Form for MAT collected in January will be due no later than February 28.

Can I remit the MAT less frequently?

All remittances are due monthly.

The Treasurer can approve a different remittance schedule in cases where accommodations are sporadic or seasonal.

How is the MAT remitted?

Payment to the City can be made via the following methods:

  • Electronic Funds Transfer
    • A Electronic Funds Transfer agreement must be completed prior to any submission.
  • Mail
    • City of Sault Ste Marie, 99 Foster Drive, Central Collections, Sault Ste Marie, ON  P6A 5X6
  • In Person
    • Civic Centre - 99 Foster Drive, Central Collections - Level 2 (Lobby)
    • Monday to Friday - 8:30 a.m. to 4:30 p.m.
Payments which are returned will be subject to a NSF charge in accordance with the City's User Fee By-law.

Credit card payments are not provided for.

Is there a penalty/fee for a late remittance?

Any late or incomplete remittances will be charged an interest rate of 1.25% per month in accordance with the City's User Fee By-law.

Does a MAT Return Form need to be submitted if no MAT was collected?

Yes, you will be required to submit the MAT Return Form for the period indicating that no MAT was collected, as well as details of exemptions.

Will the City have an audit process to verify month remittance reports from the Providers?

The City and/or its agent has the authority to inspect and audit all books, documents (such as financial statements), transactions and accounts of the accommodation providers. Accommodation providers must keep books of account, records and all documents related to the sale of accommodations, amount of the Municipal Accommodation Tax collected and remitted to the City for a period of seven years.

Are indigenous peoples exempt from paying MAT?

No, indigenous peoples are not exempt from paying the MAT.

Council Reports

July 16, 2018 Council Report
December 10, 2018 Council Report and MAT By-law 2018-218

This Background and FAQ is provided for information purposes only. Reference should be made to By-law 2018-218, O.Reg 435/17 and the Municipal Act, 2001.

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