Municipal Accommodation Tax

A MAT is a widely adopted program in municipalities across Ontario and Canada, aimed at supporting and enhancing local tourism industries. It is a fee paid by visitors renting short-term accommodations in Lake of Bays.

The MAT is permitted under Provincial Legislation O. Reg. 435/17 - Transient Accommodation Tax, which outlines how municipalities can implement and administer the tax.

Yes, the Municipal Accommodation Tax is a mandatory fee to be paid by visitors as per By-law 2025-139. 

Reservations made in advance of the effective date, January 1, 2026, are not subject to the tax.

The Municipal Accommodation Tax must be visible on the guest invoice as a separate charge on each accommodation portion of the invoice. 

HST is also payable on the MAT portion.

Depending on your point of sale, property management system or rental platform, there should be the functionality to 'add tax' through the platform.

Airbnb does not collect the MAT on behalf of the Township of Lake of Bays hosts. Airbnb has the functionality to 'add tax' through their professional hosting tool features.

Accommodation providers must report and remit payment quarterly. To file a report, you will need your businesses total accommodation revenue total for the reporting period(s) selected on the report form.

To file a report, complete the Remittance Report and select the payment option that best suits your business at the end of the report form.

Information session video coming soon.

All providers are required to report and remit under the Municipal Accommodation Tax By-law 2025-139. Non-compliance may be subject to Administrative Penalties and/or interest at 1.25% per month.

In accordance with By-law 2024-066, a penalty of 1.25% of the unpaid MAT will be charged if the taxes are not paid by the due date starting from the first day it is due and continuing on the first day of each following month until the full amount is paid. 

This penalty is calculated based on the occupancy of the establishment, unless the Township can determine the actual amount owed. Unpaid MAT is considered a debt to the Municipality and may be added to the property’s tax bill where the offence occurred.

Yes, HST is also payable on the MAT portion of the guest invoice.

MAT is to be collected and remitted only if the accommodation fee is charged. If the guest is not charged but is required to pay a cancellation fee, MAT would not apply to the cancellation fee.