- Implementation date of the Municipal Accomodation Tax (MAT) is January 1, 2018
- All guest invoices are to include a line for “Municipal Accommodation Tax” as of that date
- Remittances to Ottawa Gatineau Hotel Association (OGHA) must be made through their defined process within 30 days after months’ end
- The four percent (4%) MAT applies only on the room cost portion of overnight accommodation of all guest invoices
- Late remittances will be charged an interest rate of 1.25% per month, in accordance with regular City of Ottawa interest rate for late charges
As a popular destination for sight seeing, business and government travel, the City of Ottawa welcomes more than 10 million visitors a year. The City of Ottawa along with other levels of government, business associations and non-profit organizations promote the National Capital Region as a place to visit all year round. Visitors to the Nation’s Capital bring significant economic benefit to our city, injecting approximately $1.8 billion into our local economy each year.
On November 23, 2017, the Province of Ontario issued the Transient Accommodation Regulation 435/17, which came into force December 1, 2017 and provides the necessary provisions for municipalities across Ontario to implement a Municipal Accommodation Tax (MAT). On December 13, 2017, Ottawa City Council approved the adoption of a mandatory Municipal Accommodation Tax of four percent (4%) effective January 1, 2018 in the City of Ottawa.
The Municipal Accommodation Tax (MAT) will replace the voluntary Destination Marketing Fee (DMF), and supports Ottawa Tourism’s ongoing sales, marketing and destination development efforts.
As an eligible transient accommodator doing business and/or facilitating business transactions within the boundaries of the City of Ottawa, you will be obliged by law to collect and remit a four percent (4%) Municipal Accommodation Tax (MAT) on all rooms sold for overnight accommodation. Revenues generated from other hotel services, including but not limited to such things as meeting room rentals, Food & Beverage, and room service, will be excluded from the MAT.
The MAT is applicable to all accommodations under 30 days at hotels, motels, individual accommodators using a common platform marketplace service, as well as other accommodators not included in the exemption list. This exemption list is based on exemptions provided under the provincial Regulation, as well as that approved by Ottawa City Council, and aimed at exempting traditional Bed & Breakfast operators from charging and remitting the MAT.
The City of Ottawa has authorized the Ottawa Gatineau Hotel Association (OGHA) to collect the tax on their behalf and to administer the transition of the funds to Ottawa Tourism for the purposes of promoting and growing the tourism industry in Ottawa. The funds will be used to promote Ottawa and our region as well as to support product development and tourism growth.
Access to a monthly remittance form is available on the OGHA website and payments will be made electronically or by cheque. As a MAT collector, there will be some responsibilities placed upon you regarding verified annual room revenue statements to ensure the proper amount of taxes are collected and remitted. For access to the remittance process you must log into the OGHA website using your own password. To get started please contact Marcia McAlpin at OGHA, at firstname.lastname@example.org.
Should you have any questions, please feel free to contact OGHA or the City of Ottawa at email@example.com.