Municipal Accommodation Tax

The County of Prince Edward is implementing a Municipal Accommodation Tax (MAT) on February 1, 2020. MAT is a tax that is levied on visitors rather than residents. Currently, more than 20 municipalities in Ontario have implemented a MAT.

View the County of Prince Edward MAT by-law.

Industry FAQ

When will the MAT take effect?

The MAT will take effect February 1, 2021 in line with By-law No. 53-2020
How much is the Municipal Accommodation Tax?

The MAT for Prince Edward County will be charged at the industry standard rate of 4%. It is applicable only to the cost of accommodation.
Is this a tax on Prince Edward County residents?

No. The MAT is levied on visitors staying in Prince Edward County accommodations.
Is the MAT applicable to restaurants, attractions, etc.?

No. MAT is only applicable to the accommodation portion of short-term, roofed accommodation in Prince Edward County (e.g. motels, hotels, inns, B&Bs, vacation rentals, etc).
Is this a mandatory or voluntary tax?

As of February 1, 2020, MAT will be a mandatory charge based on the purchase price of the accommodation for all roofed, short-term accommodations.
How will MAT be applied?

Starting February 1, the MAT will be applied on the purchase price of roofed accommodation(s) for stays of 30 days or less. Charges for other services, such as meeting room rentals, food and beverage, mini bar, internet, telephone, and room service are excluded from the MAT.
What types of accommodation are required to collect and remit the MAT?

The MAT is applicable to any roofed accommodation with guests staying for less than 30 consecutive days (e.g. hotels, motels, inns, vacation rentals, B&Bs, etc.). Exclusions include tents, RVs, hospital stays, and more, as detailed in the legislation.
What happens with the funds generated through MAT?

By law, half of the funds generated by the MAT will remain with the municipality to support tourism infrastructure development. The other half must be used to support tourism marketing and development. Industry and public consultation will be taking place in Fall 2020 to help determine how MAT funds will be allocated and spent.

Remittance Details - Coming Soon

FAQs for Guests - Coming Soon

About the Legislation

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.

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 effect on December 1, 2017, outlining provisions for municipalities across Ontario to implement a Municipal Accommodation Tax (MAT).

The regulation applies if a municipality imposes a tax in respect of the purchase of transient accommodation in the municipality under Section 400.1 of the Municipal Act.

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