| What is the Municipal Accommodation Tax (MAT)? |
| The MAT is a mandatory tax that was passed by City council as required by Ontario Regulation 435/17. |
| What overnight accommodations does the MAT apply to? |
| The MAT applies to overnight accommodations at hotels, motels, inns, resorts, bed and breakfast operations and short-term rental (STR) providers, including online home sharing platforms operating in the City of St. Catharines. |
| When will the MAT take effect? |
| The MAT will be applicable to all accommodations purchased within the City of St. Catharines beginning Jan. 1, 2023. |
| What is the MAT used for? |
| The MAT is used for the exclusive purpose of promoting tourism within the City of St. Catharines. |
| What is the MAT rate for the City of St. Catharines? |
| The St. Catharines MAT rate is four per cent per night of occupancy and must be applied to accommodations provided for a continuous period of 30 days or less. |
| Is HST charged on top of the MAT? |
| Yes, HST is charged on top of the MAT. The MAT is deemed part of the consideration for the supply of the transient accommodation. |
| Where can I find information on why HST is being charged on top of the MAT? |
| The determination of which items are to be included in the base for HST is covered under Section 154 of the Excise Tax Act (R.S.C., 1985, c. E-15). |
| Is the MAT applied to service fees? |
| The tax is only applied to accommodation and should not be applied to other fees such as valet parking, laundry service, breakfast, etc. |
| What is the limit to how many days in a row the MAT should be charged? |
| The MAT must be applied to accommodations provided for a continuous period of 30 days or less. |
| How is the MAT applied to the cost of renting transient accommodations? |
| Four per cent per night of occupancy is applied to the cost of the accommodation of a continuous period of 30 days of less. |
| Can guests refuse to pay this tax? |
| Guests cannot refuse to pay MAT; it is a mandatory tax and must be paid to the accommodation provider at the time that the overnight stay is paid for. |
| When should providers begin collecting the tax? |
| The tax should be collected starting on Jan. 1, 2023 |
| Is this a mandatory or voluntary tax? |
| The MAT is a mandatory tax and must be paid to the providers of the transient accommodation by the visitor at the time the accommodations are purchased. |
| Under what authority does the provider have to charge/collect the MAT? |
| The MAT is a mandatory tax that was passed by City council as required by Ontario Regulation 435/17 imposing MAT on the purchase of short-term accommodation within the City of St. Catharines. |
| Are any guests exempt from the MAT? |
MAT applies to all transient overnight accommodations except:
- The Crown, every agency of the Crown in right of Ontario, and every authority, board, commission, corporation, office, organization of persons a majority of whose directors, members or officers are appointed or chosen by or under the authority of the Lt. Gov.
- Every board as defined in subsection 1(1) of the Education Act, R.S.O. 1990, c. E.2;
- Every university in Ontario and every college of applied arts and technology and postsecondary institution in Ontario, whether or not affiliated with the university, the enrolments of which are counted for the purposes of calculating annual operating grant entitlements from the Crown on accommodations provided to students while a student is registered and attending the institution;
- Every hospital referred to in the list of hospitals and their grades and classifications maintained by the Minister of Health and Long-Term Care under the Public Hospitals Act, R.S.O. 1990, c. P.40, and every private hospital under the authority license issued under the Private Hospitals Act, R.S.O. 1990, c. P.24;
- Every long-term care home as defined in subsection 2(1) of the Long-Term Care Homes Act, 2007, S.O. 2007, c. 8, retirement home, and hospice;
- Every treatment center that receives provincial aid under the Ministry of Community and Social Services Act, R.S.O. 1990, c. M.20; every house of refuge, or watching for the reformation of offenders; every charitable, non-profit philanthropic corporation organized as shelters for the relief of the poor or for emergency;
- Every tent or trailer site supplied by a campground, tourist or trailer park;
- Every accommodation supplied by employers to their employees in the premises operated by the employer; and
- Every hospitality room in an establishment that does not contain a bed and is used for displaying merchandise, holding meetings, or entertaining.
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| Does the MAT get applied to a rental of a hotel's boardroom or banquet room? |
| No. The MAT is only applied to a room that is being used for accommodation. The tax is exempt when a room does not contain a bed and is being used for displaying merchandise, holding meetings, or entertaining. |
| If a guest's stay begins prior to Jan. 1, 2023, and ends after Jan. 1, 2023, do providers charge the MAT when the stay begins? |
| Accommodation providers should begin charging the MAT beginning on Jan. 1, 2023. Any nights prior to that date should not be charged the MAT. |
| How does a provider register to remit taxes? |
| Providers must register transient accommodation establishments by completing a Registration Form. |
| How does a provider remit taxes collected? |
| Once the establishment is registered, providers must complete a Remittance Form. Providers will indicate on the form the number of rooms booked for the month and remit payment to the City of St. Catharines. |
| How do providers make a payment to the City? |
|
By mail:
City of St. Catharines, Finance Department
1st Floor, 50 Church St, P.O. Box 3012, St. Catharines, ON L2R 7C2
In person:
City of St. Catharines, Finance Department
1st Floor, 50 Church St, St. Catharines, ON L2R 7C2
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| When do providers have to remit payment to the City on the tax collected? |
| A provider shall, on or before the last day of every month, submit a Remittance Form to the City of St. Catharines or its designate, the amount of the MAT collected for the previous month. |
| What records should providers submit with their monthly remittance form? |
| Providers shall submit monthly statements detailing the number of accommodations sold, the purchase price of each accommodation, the MAT amount collected. Other information may be required by the City for the purposes of administering and enforcing the by-law. Providers will be informed should other information be required. |
| What happens if a provider is late in submitting a remittance? |
| Late payment fees of 1.25 per cent of the amount of MAT due will be imposed as a penalty for the non-payment of taxes on the first day of default. This amount will be based on the full occupancy of the establishment unless the actual amount of the MAT owning can be determined by the City, in which case, the percentage charge of 1.25 per cent of the actual amount of the MAT will be imposed. |
| What happens if a payment is denied by a provider’s financial institution? |
| An additional fee shall be charged for all payment remittances that are not honoured by the financial institution upon which a draw attempt is made. This amount is set out in the City of St. Catharines annual Rates and Fees guide. Note that all MAT penalties and interest that are past due shall be deemed to be in arrears, and may be added to the tax roll for any real property in the city of St. Catharines registered in the name of the provider to be collected in like manner as property taxes and shall constitute a lien upon the lands, but such lien shall not be a priority lien for the purposes of subsections 1(2.1), (2.2) and (3) of the Act and such lien will not have a higher priority than it would otherwise have in law in relation to other claims, liens or encumbrances. |
| 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. |
| What if a provider did not collect ant MAT in the reporting period? |
| If no tax was collected, providers will still be required to submit the remittance form indicating that no tax was collected in that month. It is important to maintain communication with the City. A provider’s remittance report is an attestation to tax collected and due. Contact the City immediately if there is any reason not to report as scheduled. |
| Will the City be auditing the transient accommodation providers? |
| The City has the authority to inspect and audit all books, documents, transactions and accounts of accommodation providers. Accommodation providers must keep books of account, records and all documents related to the sale of accommodations and the amount of the MAT collected and remitted to the City. |
