Municipal Accommodation Tax

Municipal Accommodation Tax (MAT)

The Province of Ontario issued the Transient Accommodation Regulation 435/17 on November 23, 2017 and it came into force December 1, 2017 providing the necessary provisions for municipalities across Ontario to implement a Municipal Accommodation Tax (MAT).

Brampton City Council approved the implementation of MAT as part of the Brampton Tourism Strategy endorsed on April 21, 2021 (CW193-2021). Subsequently, a 4% MAT rate was approved by Council on April 12, 2023 (CW-143-2023) and By-law 106-2023, was approved by Council on June 14, 2023.

All accommodation providers doing business and/or facilitating business transactions within the boundaries of the City of Brampton, are obliged by law to collect and remit a 4% MAT on all room revenue sold for overnight accommodation.

Revenues generated from other hospitality services including, but not limited to, meeting room rental, food & beverage, room service, laundry service, parking etc. will be excluded from the MAT. Some Bed & Breakfast operators may be exempt from charging a MAT, otherwise this tax is applicable to all accommodations under 30 days at hotels, motels, resorts, inns, individual accommodators using a common platform marketplace service, as well as other accommodators not previously excluded.

Fifty percent of the MAT revenue will be provided to the City of Brampton for the purposes of promoting and growing the tourism industry. The remaining fifty percent of the MAT revenue will be held in a Reserve Fund until such time as an incorporate for-profit destination marketing organization is established.

The MAT will come into effect on January 1, 2024 and will be charged at a rate of 4% for the overnight accommodation portion of your bill. The MAT is HST applicable if the business is an HST registrant.

MAT Registration for Accommodation Providers

MAT Monthly Report Submission

Related Resources

FAQs

What is the Municipal Accommodation Tax rate in Brampton?

Effective January 1, 2024, the MAT rate in Brampton will be 4% and is applicable only to accommodations of 30 days or less.

How was the rate of tax determined?

The MAT rate is consistent with the majority of Ontario municipalities collecting the tax.

What is exempt from the Municipal Accommodation Tax?

Universities, colleges and school boards;
The Crown and agencies of the Crown;
Hospitals, long-term care homes and treatment centres;
Lodging for reformation of offenders;
Shelters for the relief of the poor or for emergency;
Every tent or trailer site supplied by a campground, tourist camp or trailer park;
Accommodation supplied by employers to their employees in premises operated by the employer;
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; and
Charitable, non-profit philanthropic corporation organized as shelters for the relief of the poor or for emergency.
For a full detailed list of MAT exemptions, please consult the MAT By-Law.

Is MAT a voluntary or mandatory Tax?

MAT is a mandatory charge to be included in the accommodation payment at the time of booking.

Will MAT be charged to bookings made prior to the implementation of the tax on January 1, 2024?

If the accommodation was booked and paid for prior to the implementation date, January 1, 2024, the tax will not be applicable. If it was booked before January 1, 2024, but paid for on January 1 or onwards, the tax is applicable.

Will HST be charged on top of the MAT?

Yes. The accommodation provider is responsible for collecting and remitting the HST on the entire charge, including the MAT. Please contact the Canada Revenue Agency to confirm this information.

Is MAT a tax on Brampton ratepayers?

No. MAT will only be paid by visitors making accommodation bookings at Brampton-based hotels, motels, bed and breakfast, and short-term rental accommodations.

Where can information regarding the Municipal Accommodation Tax be found?

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