Municipal Accommodation Tax
Municipal Accommodation Tax
The implementation of a Municipal Accommodation Tax (MAT) allows municipalities across Ontario to apply a mandatory rate on accommodations. Effective Aug. 1, 2018 the City began collecting a mandatory MAT. On Nov. 7, 2023, Council approved Report 23-258 increasing the MAT rate from four (4) per cent to five (5) per cent, effective Jan. 1, 2024.
The MAT must be paid by visitors staying in Kingston hotels, motels and bed & breakfasts for 30 days or less. It is not a tax paid by local businesses. In Jan. 2021, council amended the Municipal Accommodation Tax Bylaw, to include short-term rentals beginning June 1, 2021.
Find more information about the MAT for each of the following groups:
The tax is applied to the accommodation fee only and not to other fees such as valet parking, laundry service, continental breakfast, etc.
The funds collected would be reinvested in tourism promotion and tourism products. This tax will help the City grow its investment in tourism without increasing taxes for local residents.
Frequently Asked Questions
Accommodation Providers
How much is the Municipal Accommodation Tax?
The MAT rate is five per cent and must be applied to accommodations provided for a continuous period of 30 days or less.
Is Municipal Accommodation Tax subject to HST?
The MAT is subject to a 13% HST.
Is MAT mandatory to collect?
Yes. The MAT is mandatory and must be paid by the customer to the accommodation operator at the same time that they pay for the booking.
Under what authority does the accommodation provider have to charge/collect the Municipal Accommodation Tax?
The City’s Municipal Accommodation Tax Bylaw will impose the MAT on the purchase of accommodations.
Are there exemptions to the Municipal Accommodation Tax?
The five per cent tax will not apply to accommodations that are:
- Rented for a period of more than 30 days
- Provided as shelter
- Supplied by employers to their employees in premises operated by the employer
Are any hotels charges exempt from the Municipal Accommodation Tax?
The following charges are exempt from the tax:
- Hospitality rooms in an establishment that may or may not contain a bed and is used for displaying merchandise, holding meetings, or entertaining and not being used for accommodation
- Fees such as valet parking, laundry service, continental breakfast, etc.
Boardrooms or banquet rooms are exempt.
Short-term Rentals
Is a license required to operate a short-term rental?
Yes. Starting June 1, 2021, operators require a license to operate a short-term rental in the City of Kingston. Visit the short-term rental licensing page for information on the license and application process. You will need a license in order to remit MAT.
How often do I pay Municipal Accommodation Tax? When are payments due?
MAT is collected quarterly. Payment is due 1 month after the last day of the quarter.
- Quarter 1 - Jan. 1 to March 31. MAT is due by April 30.
- Quarter 2 - April 1 to June 30. MAT is due by July 31
- Quarter 3 - July 1 to Sept. 30. MAT is due by Oct. 31.
- Quarter 4 - Oct. 1 to Dec 31. MAT is due by Jan. 31.
How do I remit my Municipal Accommodation Tax?
To complete your MAT remittance you will need the following information:
- License number from your Short-Term Rental license. It will start with “LCRL” and follow with 11 digits. Example: LCRL20220000123.
- Postal code for your short-term rental property.
- Total dollar value of rental fees you collected within each quarter you are remitting. This is only rental fees and does not include optional extra fees such as cleaning fees.
- Email address to send your receipt.
With this information in hand, you are ready to remit!
If you require further information on the remittance process or have any questions or concerns, please do not hesitate to reach out to us at MAT@cityofkingston.ca.
Guests
What is the amount of the Municipal Accommodation Tax?
The MAT rate is five per cent.
When will this tax be in effect?
The MAT came into effect on Aug. 1, 2018. The MAT was initially a result of changes in provincial policies in Jan. 2018. In Jan. 2021, council amended the Municipal Accommodation Tax Bylaw, expanding the five percent MAT on accommodations to include short-term rentals (STRs).
How is it applied to the cost of a short-term rental or hotel room?
The five per cent is applied only to the cost of the accommodation fee of a continuous period of 30 days or less and should not be applied to other fees such as valet parking, laundry service, continental breakfast etc.
Why do I have to pay this tax?
The MAT is a mandatory tax imposed by the City on the purchase of accommodations, which supports reinvestment in local tourism.
Can I refuse to pay this tax?
No, you cannot refuse to pay this tax. The MAT is mandatory and must be paid to the accommodation operator at the same time that you pay for the booking.
What happens with the funds generated through the Municipal Accommodation Tax?
Funds generated through the Municipal Accommodation Tax will be invested in destination marketing, sales, and product development in Kingston. Kingston Accommodation Partners and Tourism Kingston promote Kingston for leisure visitors, meetings and conventions, major events, media relations, tour operators, sport, film and travel trade as well as long-term destination development initiatives aimed at enhancing the visitor experience.