Council has approved an increase of Municipal Accommodation Tax from 4% to 6%, effective March 1, 2024.
On May 17, 2017, the Province enacted Bill 127, Stronger, Healthier Ontario Act, 2017, providing municipalities the authority to levy a transient accommodation tax (hotel tax). The Transient Accommodation Regulation 435/17 came into force on December 1, 2017, outlining provisions for municipalities across Ontario to implement a Municipal Accommodation Tax (MAT).
The Municipal Accommodation Tax is a new revenue tool that the provincial government has given Ontario municipalities to further promote tourism as an economic driver.
The Regulation applies if a municipality imposes a tax in respect of the purchase of transient accommodation in the municipality under section Municipal Act 400.1 of the Act.
On January 14, 2019, Town Council approved By-Law 1943, a by-law to establish a Municipal Accommodation Tax within the boundaries of the Town of Marathon, in the District of Thunder Bay.
The Municipal Accommodation Tax is effective June 1, 2019 at a rate of 4%.
On January 29, 2024, Council approved By-Law No. 2072, a by- law to amend By-Law No. 1943 to increase Municipal Accommodation Tax from 4% to 6%, effective March 1, 2024.
The tax applies to accommodation sold for a continuous period of less than 30 days in a hotel, motel, lodge, inn, bed and breakfast, dwelling unit or any place an accommodation is provided.
Amenity fees and service charges including meals, room incidentals, valet services or parking provided they are separately itemized on the invoice are not included in this tax. Hospitality rooms and meeting rooms that do not contain a bed are not considered accommodations.
The Municipal Accommodation Tax must be identified as a separate item or charge on each bill, receipt or invoice.
Forms for Accommodation Providers
Monthly Remitters:
A provider shall remit the amount collectible for the previous month on or before the last day of every month, and shall submit the Municipal Accommodation Tax Return Form (Schedule B) to the Town at that time. (For example, the September MAT return form and remittance is due to the Town on or before Oct. 31)
Quarterly Remitters
A Provider shall remit the amount for the previous quarter on or before the last day of the month following the end of the quarter and shall submit the Municipal Accommodation Tax Return Form (Schedule B) to the Town at that time.
- Q1 (January – March) is due on or before April 30
- Q2 (April – June) is due on or before July 31
- Q3 (July – September) is due on or before October 31
- Q4 (October – December) is due on or before January 31
Information for Accommodation Providers