Municipal Accommodation Tax

The Municipality of Sioux Lookout Council on October 16, 2019 approved the implementation of a Municipal Accommodation Tax (MAT) By-Law No. 61-21 for the Municipality of Sioux Lookout.

The MAT came into effect on January 1, 2020 at a rate of four percent (4%).  The rate approved by Municipal Council is consistent with other municipalities across Ontario implementing the tax.

Affected Parties: owners/operators of the following transient accommodations are subject to the Municipal Accommodation Tax:

• Hotels
• Motels
• Bed & Breakfast establishments
• Airbnb establishments
• Hostels

As a Fixed Roof Accommodation Provider doing business within the boundaries of the Municipality of Sioux Lookout, you are obligated by law to collect and remit the four percent (4%) MAT on all rooms sold for transient accommodation under 30 days, effective January 1, 2020.  This is a tax on accommodations only, with other services like meeting room rentals, food & beverage, parking, room service etc. are exempt.

For more information on the Municipal Accommodation Tax for the Municipality of Sioux Lookout, please contact Carly Collins, Treasurer, at 737-2700 or treasurer@siouxlookout.ca.

All forms related to the Administration of the Municipal Accommodation Tax (MAT) can be found below:

Accommodation Establishment Information Form (Schedule A)

Instructions on How to Report Municipal Accommodation Tax (MAT)

Municipal Accommodation Tax Return Form (Schedule B)

Whether you are an Accommodation Provider or a Guest all your questions can be answered below:

Frequently Asked Questions for Accommodation Providers

1. What is the Municipal Accommodation Tax?
2. When do I start charging the Municipal Accommodation Tax?
3. Is this a mandatory or voluntary tax?
4. What is the authority to charge the Municipal Accommodation Tax?
5. What happens with the money collected through the Municipal Accommodation Tax?
6. What hotel/accommodation charges are exempt from the Municipal Accommodation Tax?
7. Are long-term contracts for room rentals with businesses that exceed 30 days exempt?
8. What if I have existing contracts with business with a fixed room rate?

9. Do I need to show the Municipal Accommodation Tax on the invoice or receipt?

10. Is the Harmonized Sale Tax (HST) charged on the Municipal Accommodation Tax?

11. What revenue does the Municipal Accommodation Tax apply to if I charge a fee that includes accommodation and meals (i.e. bed and breakfast)?

12. What happens if guests do not show up for their reservation?

13. Do I have to charge the Municipal Accommodation Tax if a guest has booked their stay prior to January 1, 2020, when the MAT is implemented?
14. If a guest’s stay begins prior to January 1, 2020 and ends after January 1, 2020, do I charge the Municipal Accommodation Tax when their stay begins?
15. If a guest puts a deposit to hold a room prior to January 1, 2020 for a booking January 1, 2020 or later, does Municipal Accommodation Tax apply?
16. When is my first remittance due?
17. What is the purpose of the Accommodation Establishment Information Form?
18. How do I report and remit the Municipal Accommodation Tax that I collected?
19. What if a refund was issued to a guest after submitting the return?
20. What if I did not collect any Municipal Accommodation Tax in the reporting period?

Frequently Asked Questions for Guests

1. What is the Municipal Accommodation Tax (MAT)?

2. How is the Municipal Accommodation Tax applied to the purchase price of accommodation?

3. Are other charges by accommodation providers exempt from the Municipal Accommodation Tax?

4. Is the payment of the Municipal Accommodation Tax optional?

5. If I’m travelling for medical purposes do I have to pay the Municipal Accommodation Tax?

6. What happens with the money collected through the Municipal Accommodation Tax?

Frequently Asked Questions for Accommodation Providers

1.  When do I start charging the Municipal Accommodation Tax?

• The Municipal Accommodation Tax, or MAT, is a 4% tax charged on the cost of fixed roof transient accommodations sold for a continuous period of less than 30 days within the boundaries of the Municipality of Sioux Lookout.
• The tax applies to all accommodation sold for a continuous period of less than 30 days in a hotel, motel, inn, hostel, bed and breakfast and Airbnb.

2.  When do I start charging the Municipal Accommodation Tax?

• Effective January 1, 2020

3.  Is this a mandatory or voluntary tax?

• Mandatory. The Municipal Accommodation Tax must be collected by the accommodation provider at the same time customers are charged for the booking.

4.  What is the authority to charge the Municipal Accommodation Tax?

• On October 16, 2019, Sioux Lookout Council passed By-Law, 87-19 which provides for mandatory collection and remittance of the Municipal Accommodation Tax.  The municipality is authorized per section 400.1 of the Municipal Act, 2001 and Ontario Regulation 435/17 to establish and to collect the tax.

5.  What happens with the money collected through the Municipal Accommodation Tax?

• The tax will generate funding to promote tourism within the Municipality of Sioux Lookout.  50% of the net revenue from the Municipal Accommodation Tax will go to tourism promotion and development with a focus on attracting more visitors to the Municipality through sports and cultural events, conventions, enhanced attractions and outdoor activities.

• The other 50% of the net revenue will be retained by the Municipality, earmarked for infrastructure projects that promote tourism and that benefit residents and visitors.

6.  What hotel/accommodation charges are exempt from the Municipal Accommodation Tax?

• Amenity fees and service charges including meals, room incidentals provided they are separately itemized on the invoice.
• Hospitality rooms and meeting rooms that do not contain a bed are not considered accommodations.

7.  Are long-term contracts for room rentals with businesses that exceed 30 days exempt?

•  Yes, the purchaser, per the By-Law, is the person or business who remits money for the room and therefore the Municipal Accommodation Tax would not apply for a contract of 30 days or more.
  
  

8.  What if I have existing contracts with business with a fixed room rate?

• Municipal Accommodation Tax applies to accommodations purchased on or after January 1, 2020.  If payment occurs on or after January 1^st for accommodation occupied on or after January 1^st, Municipal Accommodation Tax applies even if provided through a corporate contract.

9.  Do I need to show the Municipal Accommodation Tax on the invoice or receipt?

• Municipal Accommodation Tax applies to accommodations purchased on or after January 1, 2020.  If payment occurs on or after January 1^st for accommodation occupied on or after January 1^st, Municipal Accommodation Tax applies even if provided through a corporate contract.

10. Is the Harmonized Sale Tax (HST) charged on the Municipal Accommodation Tax?

• Yes, if the accommodation provider is registered for HST.  The accommodation provider is responsible for collecting and remitting the HST on the room charge and on the Municipal Accommodation Tax.  HST is remitted directly to the Canada Revenue Agency.

11.  What revenue does the Municipal Accommodation Tax apply to if I charge a fee that includes accommodation and meals (i.e. bed and breakfast)?

• If is the responsibility of the accommodation provider to allocate the revenue from the accommodation charge separate from other services, amenities or charges on the invoice and collect and remit the Municipal Accommodation Tax on the accommodation portion of the fees.  If the fees are not separately listed on the invoice, the Municipal Accommodation Tax will apply to the entire invoice.

12. What happens if guests do not show up for their reservation?

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

13.  Do I have to charge the Municipal Accommodation Tax if a guest has booked their stay prior to January 1, 2020, when the MAT is implemented?

• If the accommodation was booked and paid for prior to January 1, 2020, the Municipal Accommodation Tax is not applicable.  If the accommodation was booked before January 1, 2020, but paid for on or after January 1, 2020, the Municipal Accommodation Tax is to be charged, collected and remitted.

14.  If a guest’s stay begins prior to January 1, 2020 and ends after January 1, 2020, do I charge the Municipal Accommodation Tax when their stay begins?

• The Municipal Accommodation Tax must be charged starting January 1, 2020.  The Municipal Accommodation Tax is not to be applied to any nights prior to January 1, 2020.

15.  If a guest puts a deposit to hold a room prior to January 1, 2020 for a booking January 1, 2020 or later, does Municipal Accommodation Tax apply?

• Yes, if final payment in full for accommodation occurs on or after January 1, 2020, the Municipal Accommodation Tax applies to the accommodation rate, regardless of any deposits made 

16.  When is my first remittance due?

• The Municipal Accommodation Tax (MAT) is be remitted in the same manner as your Harmonized Sale Tax (HST).  If you remit your HST monthly, the MAT shall be remitted on a monthly basis.  If you remit HST quarterly, annually or who are not registered to remit HST, you shall remit the amount of the MAT on a quarterly basis.  The remittance of the Municipal Accommodation Tax shall be submitted for the previous month/quarter on or before the last day of the month following the end of the month/quarter and shall be submitted on the Municipal Accommodation Tax Return Form to the Municipality for the purpose of administrating.All eligible electors on the official Voters' List provided by the Municipality. 

17. What is the purpose of the Accommodation Establishment Information Form?

• The Accommodation Establishment Information Form (Schedule A) will be used by the Municipality to set up your establishment name, address and contact information correctly in our accounting system and provide you with a customer ID.  This customer ID will then be used to associate your monthly/quarterly remittances and payments with the proper establishment.

18.  How do I report and remit the Municipal Accommodation Tax that I collected?

• Complete the Municipality of Sioux Lookout’s Municipal Accommodation Tax Return Form (Schedule B)

  For instructions and information about reporting periods, calculations, exemptions and adjustments, payment and submission please click here.

19.  What if a refund was issued to a guest after submitting the return?

• Adjustments from prior reporting periods can be made in the period the refund was returned. 

20.   What if I did not collect any Municipal Accommodation Tax in the reporting period?

• If you did not sell any accommodations subject to the Municipal Accommodation Tax and thus no Municipal Accommodation Tax was collected, you will still be required to submit the Municipal Accommodation Tax Return indicating that no Municipal Accommodation Tax was collected in the reporting period. 

Frequently Asked Questions for Accommodation Guests

21.  What is the Municipal Accommodation Tax (MAT)?

• The tax is added to the price paid for a room booked at a fixed roof accommodation in the Municipality of Sioux Lookout as required by law.  The rate is 4% of the total room cost.  The tax applies to all accommodation sold for a continuous period of less than 30 days in a hotel, motel, inn, hostel, bed and breakfast and Airbnb.  The tax is effective January 1, 2020.
  

22.  How is the Municipal Accommodation Tax applied to the purchase price of accommodation?

• The amount of the tax must be clearly identified as a line item on your bill or invoice as “Municipal Accommodation Tax”.  The amount is 4% of the total accommodation cost.

23.  Are other charges by accommodation providers exempt from the Municipal Accommodation Tax?

• Yes.  The Municipal Accommodation Tax is only applied to the total purchase price of your accommodation (i.e. room fee).  It does not apply to amenity fees or service charges including meals and room incidentals.  However, to be exempt from the Municipal Accommodation Tax, these amenities and services charges must be separately itemized on the invoice/bill.

24.  Is the payment of the Municipal Accommodation Tax optional?

• No.  The Municipal Accommodation Tax is mandatory as per the Municipal By-Law.  It must be paid at the same time you complete the purchase, in full, for your stay.

25.  If I’m travelling for medical purposes do I have to pay the Municipal Accommodation Tax?

• Yes.  However, the Ontario Ministry of Health & Long-Term Care provides funding through the Northern Health Travel Grant for eligible applicants.  For more information, visit the Ministry website: http://www.health.gov.on.ca/en/public/publications/ohip/northern.aspx 

26. What happens with the money collected through the Municipal Accommodation Tax?

• The tax will generate funding annually to promote tourism within the Municipality of Sioux Lookout.  50% of the net revenue from the Municipal Accommodation Tax will go to tourism promotion and development with a focus on attracting more visitors to the Municipality through sports and cultural events, conventions, enhanced attractions and outdoor activities. 

  The other 50% of the net revenue will be retained by the Municipality of Sioux Lookout which will be earmarked for infrastructure projects.