Background
The Municipal Accommodation Tax (MAT) is a tax charged to guests staying in short-term accommodations within Sault Ste. Marie. On December 10, 2018, City Council approved By-law 2018-218 to establish the MAT at 4%, effective January 1, 2019. On June 2, 2025, Council approved By-law 2025-86 to increase the rate to 6%, effective September 1, 2025.
The MAT applies to stays of fewer than 30 consecutive days in fixed-roof accommodations such as hotels, motels, motor hotels, lodges, inns, resorts, bed and breakfasts, and similar establishments. The tax is applied only to the accommodation charge, not to meals, parking, or other separately itemized incidentals.
The MAT is regulated by the Province of Ontario under the Municipal Act, 2001 and Ontario Regulation 435/17.
Why Does MAT Matter?
The MAT ensures that visitors help fund local tourism. Revenues are reinvested into marketing and product development that benefit both residents and tourists, contributing to Sault Ste. Marie’s economic and cultural growth.
How is the MAT Distributed?
Accommodation providers collect the MAT and remit it to the City of Sault Ste. Marie. Funds are dispersed 3 ways:
- Tourism Sault Ste. Marie (TSSM) – TSSM is a not-for-profit organization established in 2020 that supports the advancement of tourism through marketing, product development, and strategic planning. The TSSM Board of Directors, appointed by City Council, includes:
5 members representing accommodation providers
4 members from other tourism sectors
A management agreement is established with the City, which defines responsibilities, including reporting, administration, and procurement.
- Tourism Development Fund (TDF) –. The Tourism Development Fund supports new and existing events, as well as product development projects, that attract new visitors and encourage current visitors to extend their stay in our community. Applications are accepted year-round in two streams:
Festivals & Events
Product Development
- City Tourism Division – A portion of the MAT fund remains within the City Tourism Division to support tourism related product development initiatives and operations. For full transparency, revenues and expenditures are reported annually to City Council.
Starting September 1, 2025, the additional 2% MAT will be retained by the City and used specifically to help fund the Waterfront Design Master Plan.
Forms for Accommodation Providers
- Accommodation Establishment Information Form
- Municipal Accommodation Tax Return Form (4 % accommodations up to August 31, 2025)
- Municipal Accommodation Tax Return Form (6% accommodations starting September 1, 2025)
- Electronic Funds Transfer Form
Applicability and Exemptions
Exempt Charges:
- Meals, parking, and other incidentals (if separately itemized)
- Hospitality or meeting rooms without beds
Exempt Accommodations:
- Stays of 30 consecutive days or more
- Student housing linked to government funding
- Long-term care homes and retirement residences
- Tent and trailer sites
No-Shows:
MAT applies if the guest is charged for the room. Cancellation fees alone do not trigger MAT.
Commission Deductions:
The MAT is based on the full accommodation rate. Booking fees or commissions cannot be deducted from the tax base.
Invoicing Information:
- The MAT must be clearly itemized on all guest invoices as “Municipal Accommodation Tax,” including both the rate and the amount.
- If the accommodation provider is HST-registered, HST must also be charged on the MAT.
- For stays longer than 30 days, MAT is not charged at all — not even for the first 29 days.
Transition Information
Bookings before September 1, 2025:
- If paid on or after September 1, the 6% rate applies.
- For stays that begin before and end after September 1:
4% applies to nights before August 31, 2025
6% applies starting September 1, 2025
If the final payment is made on or after September 1, 2025, the 6% MAT applies.
What happens with the money collected through the MAT?
Some of the key initiatives supported by the MAT include:
- Miss Marie Lock Tour Boat: This scenic excursion highlights the region’s beautiful waterways and provides a unique opportunity to explore the historic locks system.
- Soo Curlers Association Technology Upgrades: With TDF support, state-of-the-art technological improvements were made to enhance the visitor experience and modernize the venue for sporting events and competitions, including the Henderson Metal Fall Classic.
- Queen Street Cruise: A popular community event that draws classic car enthusiasts to downtown Sault Ste. Marie creating a vibrant atmosphere that attracts both locals and visitors.
- Snowbirds Airshow: Supported by the TDF, the iconic Snowbirds Airshow celebrated the 100th Anniversary of the Canadian Air Force and the Ontario Provincial Air Service with a breathtaking aerial display that captivated thousands of spectators.
- Voyageur Trail Association Trail Signage: TDF funding contributed to improved trail signage, enhancing the hiking experience and promoting safer, more accessible routes for visitors exploring the area’s natural beauty.
- Hogans Homestead: TDF funding made the development of unique maple huts possible. This gives visitors an immersive experience in local maple syrup production, adding an authentic cultural and culinary attraction.
- Soo Finnish Ski Club- Ontario Youth Nordic Championships: TDF support brought this prestigious youth skiing competition to the City, attracting athletes and families from across Ontario and boosting winter tourism.
Collections and Remittances
How to report:
Submit the appropriate monthly MAT Return Form (4% or 6%) to: MAT@cityssm.on.ca.
Deadline:
Returns are due by the end of the following month (e.g., January’s return is due February 28).
Remittance Frequency:
Monthly reporting is required, through seasonal businesses may request alternate arranges with the City Treasurer.
Payment Options:
- Electronic Funds Transfer (EFT)
- Mail – 99 Foster Drive, Central Collections, Sault Ste. Marie, ON P6A 5X6
- In Person – Ronald A. Irwin Civic Centre , Level 2, Mon-Fri, 8:30 a.m. -4:30 p.m.
Returned payments are subject to NSF charges. Credit cards are not accepted.
Late Penalties:
Late or incomplete remittances incur interest 1.25% per month, as per the City’s User Fee by-law.
Zero Collections:
A return must still be submitted even if no MAT was collected, including an explanation of exemptions.
Audits:
The City or its agent may audit MAT submissions and require access to financial records. Records must be retained for 7 years.
Are Indigenous peoples exempt from the MAT?
No. Indigenous peoples are not exempt from paying the Municipal Accomodation Tax.
Is the MAT mandatory?
Yes. All accommodation providers are legally required to collect and remit the MAT.
What is the legal authority for the MAT?
- Municipal Act, 2001, Section 400.1
- Ontario Regulation 435/17
- By-law 2018-218 – 4% MAT (effective January 1, 2019)
- By-law 2025-86 – 6% MAT (effective September 1, 2025)
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.
Contact Information
MAT@cityssm.on.ca
705-759-5278