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Municipal Accommodation Tax (MAT)


At this time, only hotels and motels must pay a four percent (4%) Municipal Accommodation Tax (MAT) to the City of London as per bylaw # A.-7753-259.  New regulations are being considered so that all businesses and individuals providing transient accommodation such as hotels, motels, and short term rentals (e.g. Airbnb, VRBO, bed & breakfasts) must remit MAT to the City of London.

The revenue from MAT is allocated with 50% to Tourism London,which supports the tourism industry, and 50% to the City of London to fund programs and services that support visitors to the city (e.g. culture, parks and recreation).

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  • Rates

    Hotels and motels must pay a four per cent (4%) Municipal Accommodation Tax (MAT) to the City of London. MAT is payable on the purchase price of the room portion of rental accommodations.  Other services, including meeting room rentals, food and beverage, room services, internet and phone charges, etc., are excluded from the MAT provided that they are itemized separately on the invoice.

  • Exemptions

    MAT does not apply to the following types of transient accommodation:

    1. Universities, colleges and school boards;
    2. The Crown and agencies of the Crown;
    3. Hospitals, long-term care homes and treatment centres;
    4. Short-term rentals, including bed & breakfast accommodators and entities listing on internet platforms such as Airbnb and Vacation Rentals by Owner (VRBO);
    5. Lodging for reformation of offenders
    6. Shelters for the relief of the poor or for emergency; and
    7. Every tent or trailer site supplied by a campground, tourist camp or trailer park.

    For details on MAT exemptions, consult Section 3 of the MAT by-law.

  • Interest and Penalties
    1. Penalties and interest on overdue accounts at the rate applicable to overdue property taxes shall be payable monthly by the providers of transient accommodation.
    2. A fee, as perscribed by the Fees & Changes By-Law A-52 shall be charged in respect of all remittances made by cheque that are not honoured by the financial institution.
    3. Every person who contravenes any provision of the by-law is guilty of an offence and subject to fines.
  • Audit and Inspections
    1. Every Provider shall keep records, for no less than three (3) years, with the necessary particulars of sales of accommodation, amount of the Municipal Accommodation Tax collected; and the remittances made to the tax collection agent.
    2. The City Treasurer or designate or the City’s designated tax collection agent may inspect all records of Providers.
    3. Every Provider shall furnish upon the demand of the City Treasurer or the City’s designated tax collection agent for reasonable inspection, copies of records required for the purposes of the administration and enforcement of the MAT by-law.
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  • Collecting the Municipal Accommodation Tax

    All guest invoices must include a separate line for the four per cent (4%) Municipal Accommodation Tax (MAT), which applies to the room cost portion only.  Other guest services such as meeting rooms, food and beverage, room services, internet and phone charges, are excluded from the tax, provided they are itemized separately on the invoice.

    The HST is applicable to the funds received from the Municipal Accommodation Tax if the business is an HST registrant.

  • Remitting the Municipal Accommodation Tax

    The Ontario Restaurant, Hotel and Motel Association (ORHMA), as the designated tax collection agent for hotels and motels for the City of London, will collect MAT on the City’s behalf.  The MAT fees collected must be remitted to ORHMA within 15 days after month’s end. Late remittances will be charged at a monthly rate of interest applicable to overdue property taxes

    Providers of transient accommodation shall, on a monthly basis within 15 days of the end of each calendar month for the month prior, provide a monthly statement in the form required by the tax collection agent. These monthly statements shall include:

    1. The number of rooms sold;
    2. The purchase prices of the rooms sold;
    3. The number of rooms that were exempt under the by-law and proof the Provider relied on; and,
    4. The MAT collected.
  • Refunds

    If the MAT was added to an invoice that was paid by a guest, and the guest was subsequently issued a full or partial refund on that accommodation charge, the guest should also be refunded the applicable amount of MAT that corresponds to the refund amount. If the refund occurs after the MAT has been remitted, the MAT submission the following month can be adjusted noting the refund in the submission documentation.

    If the guest does not show and the establishment's policy is to charge a portion of the room rental as a penalty, then the MAT should also be charged to the no show portion. Alternatively, if the establishment's policy is to charge a flat administrative fee for no shows regardless of the room rate, then the MAT is not applied.

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  • Definition of Short-Term Rentals

    Short-term rentals occur in dwelling types such as detached houses, townhouses, and apartment buildings and are operated by owner occupants, tenants, property investors and management companies. Short-term rentals are often listed on internet platforms such as Airbnb, Homeaway, Vacation Rentals by Owner (VRBO), Craigslist and Kijiji.  Bed and Breakfasts operate from an operator's principal residence and would therefore be treated as a short-term rental.

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  • Application of the Municipal Accommodation Tax (MAT)

    Effective October 1, 2018, the City of London implemented a four per cent (4%) Municipal Accommodation Tax (MAT) on hotels and motels in London.

    The MAT is applied to all rooms used for rental accommodations provided for a continuous period of less than 30 nights.

    The MAT applies to the room cost portion only. Other guest services such as meeting rooms, food and beverage, room services, internet and phone charges, are excluded from the tax, provided they are itemized separately on the invoice.

    The HST is charged on the Municipal Accommodation Tax if the business is an HST registrant.

  • Paying the Municipal Accommodation Tax (MAT)

    All guest invoices will include a separate line for the four per cent (4%) Municipal Accommodation Tax (MAT), which applies to the room cost portion only.  Other guest services such as meeting rooms, food and beverage, room services, internet and phone charges, are excluded from the tax, provided they are itemized separately on the invoice.

  • Refunds

    If the MAT was added to an invoice that was paid by a guest, and the guest was subsequently issued a full or partial refund on that accommodation charge, the guest should also be refunded the applicable amount of MAT that corresponds to the refund amount.

    If the guest does not show and the establlishment's policy is to charge a portion of the room rental as a penalty, then the MAT should also be charged to the no show portion. Alternatively, if the establishment's policy is to charge a flat administrative fee for no shows regardless of the room rate, then the MAT is not applied.

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