Municipal Accommodation Tax

• Implementing MAT in Lincoln

  The Municipal Accommodation Tax program in the Town of Lincoln, marks a strategic move towards sustainable tourism growth, balancing economic benefits for the community and enhanced experiences for both residents and visitors. 

  Commencing April 1, 2024 for Traditional Hotel Operators and July 1, 2024 for Short-Term Accommodators (STA) MAT stands at four percent (4%) and is applied to the purchase of overnight transient accommodations providing continuous stays of 28 nights or less at hotels, motels, inns, bed and breakfast operations and STAs within the Town of Lincoln municipal boundary.  

  Excluded from this tax are other services, such as meeting room rentals, food and beverage, room services, internet and phone charges, provided they are itemized separately on the bill. Additionally, the Harmonized Sales Tax (HST) is applicable to the MAT portion.  

• Implementation Timeline

  The phased implementation begins on April 1st, 2024, for traditional accommodations and July 1st, 2024, for STAs. The revenue-sharing model allocates 80% to Lincoln’s Destination Marketing Organization (DMO) and 20% for municipal tourism-based investments. 

• Legislation

  Section 400.1 of the Municipal Act, 2001, S. O. 2001, c.25, provides that the council of a municipality may pass by-laws imposing a tax in respect of the purchase of transient accommodation within the city. Amendments were introduced as part of the 2017 Provincial Budget and received Royal Assent on May 17, 2017. 

  Ontario Regulation 435/17: Transient Accommodation Tax under the jurisdiction of the Municipal Act, 2001 came into effect December 1, 2017, allowing municipalities to levy a Municipal Accommodation Tax.

  Town of Lincoln Council approved By-law No. 2023-68: By-law to Enact A Municipal Accommodation Tax in the Town of Lincoln, establishing a mandatory MAT to be collected as April 1st, 2024 for traditional accommodations, such as hotels, motels, and inns operating in the Town of Lincoln; and July 1st, 2024 for bed and breakfast organizations, short-term accommodations (STAs) providers (including all online home sharing platforms), and campgrounds/RV parks (on short-term rentals only) operating in the Town of Lincoln.

• Exemptions

  The MAT imposed under this By-law does not apply to Accommodation provided by:    

  • The Crown, every agency of the Crown in right of Canada, every agency of the Crown in right of Ontario, and every authority, board, commission, corporation, office, or organization of persons a majority of whose directors, members or officers are appointed or chosen by or under the authority of the Lieutenant Governor in Council of a member of the Executive Council. 
  • Every board as defined in subsection 1(1) of the Education Act, R.S.O. 1990, c. E.2. 
  • Every university or a college of applied arts and technology or post-secondary institution whether or not affiliated with a university, the enrolments or which are counted for purposes of calculating annual operating grants entitlements from the Crown. 
  • 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 operated under the authority of a licence 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 Fixing Long-Term Care Act, 2001, S.O. 2021, c. 39, Sched. 1;   f) Every Hospice. 
  • A hotel or motel being used by the Town of the Regional Municipality of Niagara, or an agent of either of them, for shelter purposes. 
  • A treatment center that received private funding, or provincial aid under the Ministry of Community and Social Services Act, R.S.O. 1990, c. M.20. 
  • A house of refuge, or lodging for the reformation of offenders. 
  • A charitable, non-profit philanthropic corporation organized as shelters for the relief of the poor or for an emergency. 
  • A tent or trailer site supplied by a campground, tourist camp or trailer park which is purchased for a period of 28 days or more 
  • Lodging provided by employers to their employees on a premises operated by the employer 
  • A hospitality room in an establishment that may or may not contain a bed and is used for displaying merchandise, holding meetings, or entertaining. 
  • Accommodation bookings with signed contracts prior to the date that this By-law takes effect, whether paid partially or in-full.  All new bookings from the implementation date (April 1, 2024, for Traditional Hotel Operators and July 1, 2024 for Short-Term Accommodation Operators) will be subject to the MAT. Any bookings made prior to the implementation dates noted above are exempt from MAT collection & remittance. 

• Partnering With ORHMA

  ORHMA is the largest provincial not-for-profit hospitality association in Canada. With over 4,000 members, representing more than 11,000 establishments across the province, ORHMA is uniquely positioned to represent the issues that most impact your business. 

  ORHMA represents the industry's interests at both the Provincial and Municipal levels of government. Through their specialized in-house government relations experts, their provincial Board of Directors and local Regional Boards, the Association provides pertinent and timely advice on industry-specific issues to politicians across the province.  

  The Association's dedicated and professional Membership Team provides ORHMA members with meaningful cost-saving programs and unique educational services. These resourceful programs not only improve the bottom line for our members, but also enhance their operating standards.  

• Filing MAT Reports & Remitting Payments

  Town Staff recognize and understand the value of time for our local operators. For hotel operators, the data entry process takes approximately 3 to 5 minutes per month, ensuring a minimal impact on their daily operations. 

  Short-term rental (STR) operators will appreciate a similar streamlined approach, with data entry taking only about 2 minutes per quarter. This efficiency is designed to support the diverse operational needs of our accommodation providers. 

  Each local accommodation operator will be given their own unique log-in credentials. All data is kept confidential. Only designated Town Staff and a compliance officer from ORHMA will have access to the data. 

  Traditional Hotel Remittance Schedule

  Hotel Accommodation Operators will make remittances of the MAT on a monthly basis to ORHMA, within 15 days of the end of each calendar month for the month prior.

  Month/Year	Remittance Date
  January 2025	February 17, 2025
  February 2025	March 17, 2025
  March 2025	April 15, 2025
  April 2025	May 15, 2025
  May 2025	June 16, 2025
  June 2025	July 15, 2025
  July 2025	August 15, 2025
  August 2025	September 15, 2025
  September 2025	October 15, 2025
  October 2025	November 17, 2025
  November 2025	December 15, 2025
  December 2025	January 15, 2026

   

  Short-term Accommodation Providers Remittance Schedule

  Short-term Accommodation Operators will remit MAT collected on or before the 15^th day for the previous quarter. See schedule below:

  Quarter	Remittance Date
  Q1 – January 1, 2025 to March 31, 2025	April 15, 2025
  Q2- April 1, 2025 to June 30, 2025	July 15, 2025
  Q3- July 1, 2025 to September 30, 2025	October 15, 2025
  Q4- October 1, 2025 to December 31, 2025	January 15, 2026

• Payment Options

  To further enhance operational convenience, payments can be made to the Ontario Restaurant Hotel & Motel Association (ORHMA) via Electronic Funds Transfer, wire, or cheque. This flexibility accommodates different operator preferences and ensures a seamless financial transaction process. 

  It's important to note that cash and credit card payments will not be accepted. This decision is in line with industry best practices and contributes to a more secure and transparent financial handling process. 

• Contacting ORHMA

  For access and information on how to remit payments, contact ORHMA by email mat@orhma.com or call 905-361-0268. 

  To register your accommodation(s) with the ORHMA, please contact: 

  Sanju Abraham - Financial Controller  

  • Ontario Restaurant Hotel & Motel Association (ORHMA)
  • sabraham@orhma.com
  • mat@orhma.com 
  • Phone: 905-361-0268            

Frequently Asked Questions (FAQ's)

• What is the Municipal Accommodation Tax (MAT), and why was it enacted?

  The MAT is a tax imposed on the purchase of transient accommodation within the Town of Lincoln. It was enacted to generate revenue for the municipality and support tourism-related activities

• Who is responsible for paying the MAT?

  Every purchaser of accommodation is liable for the payment of MAT. This includes individuals, businesses, or entities that purchase transient accommodation within the Town of Lincoln. 

• What is the tax rate for MAT, and when is it applicable?

  The tax rate is four (4) percent of the purchase price of accommodation provided for a period of 29 days or less. It is applicable to various types of accommodations, such as hotels, motels, lodges, inns, short-term accommodations, bed and breakfast establishments, dwelling units, and more. 

• Are there any exemptions to the MAT?

  Yes, there are exemptions, and they include accommodation provided by certain entities such as the Crown, educational institutions, hospitals, hospices, and others. The exemptions are detailed in section 4 of the By-Law.

• How and when should providers collect and remit MAT?

  Providers are required to collect MAT from purchasers at the time of the accommodation purchase. They must include a separate item or charge identified as "Municipal Accommodation Tax" on receipts, invoices, or similar documents. Remittance to the Town or its agent should be done on a monthly basis for traditional accommodations operators and quarterly for all short-term accommodation operators.  

• What happens if MAT is not paid on time?

  Interest at a rate of 1.25 percent per month will be charged on the outstanding amount. The Town may take various enforcement measures, including adding arrears to the tax roll, registering liens on properties, bringing legal actions for recovery, and utilizing collection agencies. 

• How long should providers keep records related to MAT?

  Providers are required to keep books of account, records, and documents related to accommodations for a period of no less than seven years. 

• Can providers appeal MAT assessments?

  The By-law does not explicitly mention an appeal process, but providers may seek clarification or dispute resolutions by contacting the Town.

• When does the By-law come into effect?

  The By-law is effective from the date of its final passing, which is December 13, 2023. 

• Does the MAT apply to an additional guest staying in a room? How about a rollaway bed?

  he MAT is typically applied per room, regardless of the number of guests occupying the room. It is not directly tied to the number of occupants or the use of additional amenities like rollaway beds. The tax is assessed on the accommodation itself to ensure a fair and standardized contribution from each lodging unit towards the promotion and development of tourism in the Town of Lincoln. 

• Why choose a MAT instead of a Destination Marketing Fee (DMF)?

  The decision to implement a MAT over a Destination Marketing Fee (DMF) is based on the Town's strategic approach to funding tourism initiatives. The MAT allows for a more standardized and regulated method of collecting funds from accommodations, ensuring consistent contributions for the promotion and development of tourism in the Town of Lincoln. This approach provides a transparent and accountable revenue stream dedicated to enhancing the overall visitor experience. 

• Why is the MAT program only applied to accommodations to promote the destination? Why not the wineries?

  The focus of the MAT program is to generate funds specifically for the promotion and development of tourism within the Town of Lincoln. The program targets accommodations as they directly benefit from tourism-related services and infrastructure. While wineries play a vital role in our tourism landscape, the MAT is designed to support initiatives that contribute directly to attracting and accommodating visitors, ensuring sustained growth in the tourism sector. 

• How do I add the MAT to my Airbnb Listing?

  For information on how to add MAT to your Airbnb listing, please review Implementing MAT on Airbnb Listings.

  Or, please visit: https://www.airbnb.ca/help/article/2523

• How do I handle existing reservations for upcoming guests in light of the new Municipal Accommodation Tax (MAT)?

  If you have accommodation bookings made prior to the effective date of the By-law, these bookings are exempt from the MAT. For Traditional Hotel Operators, the MAT implementation date is April 1, 2024, and for Short-Term Accommodation Operators, it is July 1, 2024. Any new bookings made from these implementation dates onward will be subject to MAT collection and remittance. Existing reservations with contracts signed before these dates do not require MAT collection or remittance.