Municipal Accommodation Tax (MAT)

Pickering City Council approved the Municipal Accommodation Tax (MAT) By-law (hyperlink to bylaw) which requires hotels and other providers of transient accommodations to collect a mandatory Municipal Accommodation Tax (MAT) for properties in the City of Pickering.

The tax rate of 4% is effective May 1, 2025.

MAT is applied to the purchase price of accommodations provided for less than 28 consecutive days, but greater than four hours, at a hotel, motel, motor hotel, lodging house, inn, resort, or hostel. The tax only applies to the room cost portion of rental accommodation. Other services, including meeting room rentals, food and beverage, room services, internet, and phone charges, are excluded from the MAT provided they are itemized separately on the bill. If the business is an HST registrant, HST is also payable on the MAT portion.

Information for Guests

What is the Percentage of MAT in Pickering?

The MAT is 4% and will be applied to accommodations purchased for a continuous period of 28 consecutive nights or less.

Can I refuse to pay this tax?

MAT is mandatory and must be paid to the accommodation operator at the same time that you pay for the accommodation.

Are there exemptions for MAT?

The MAT does not apply to the following accommodations:

(a)       the Crown, every agency of the Crown in right of Ontario, and every authority, board, commission, corporation, office or organization of persons a majority of whose directors, members or officers are appointed or chosen by or under the authority of the Lieutenant Governor in Council or a member of the Executive Council;

(b)       every board as defined in subsection 1(1) of the Education Act;

(c)       every university in Ontario and every college of applied arts and technology and post-secondary institution in Ontario whether or not affiliated with a university, the enrolments of which are counted for purposes of calculating operating grants entitlements from the Crown;

(d)       every hospital referred to in the list of hospitals and their grades and classifications maintained by the Minister of Health and Long-Term Care under the Public Hospitals Act and every private hospital operated under the authority of a licence issued under the Private Hospitals Act;

(e)       every long-term care home as defined in subsection 2(1) of the Fixing Long-Term Care Act, 2021 and every hospice;

(f)        a hotel or motel used by the City or its service providers for shelter purposes;

(g)       a treatment centre that receives private funding or provincial aid under the Ministry of Community and Social Services Act;

(h)       a house of refuge or Lodging for the reformation of offenders;

(i)        a charitable, non-profit philanthropic corporation organized as shelter for the relief of the poor or for emergency;

(j)        a tent or trailer site supplied by a campground, tourist camp or trailer park;

(k)       employers to their employees in premises operated by the employer;

(l)        a hospitality room in an establishment that may or may not contain a bed and is used for displaying merchandise, holding meetings or entertaining; or,

(m)      group bookings with contracts that are entered into prior to the date that this By-law takes effect.

How will the MAT funds be collected?

Licensed accommodation providers shall collect the Municipal Accommodation Tax from the Purchaser at the time the Accommodation is purchased.

What is Destination Pickering Inc. 

Under Ontario Regulation 435/17 (Transient Accommodation Tax) of the Municipal Act, 2001 (Ontario), the City must share a minimum of 50% of revenues (less the City’s reasonable costs of collecting and administering the tax) with an entity that is designated as an Eligible Tourism Entity. Destination Pickering Inc. will act as the Eligible Tourism Entity for Pickering focusing on tourism promotion and marketing.

How will revenue from the MAT be spent? 

The revenue from MAT will be shared 50/50 between the City and Destination Pickering Inc. to fund tourism promotion and development across Pickering.

Hotel Providers

A 4% Municipal Accommodation Tax (MAT) across Pickering applies to hotels, motels, motor hotels, lodging houses, inns, resorts, or hostels.

Hotel & Motel Registration

To register a hotel/motel or change an existing registration  with Ontario Restaurant Hotel and Motel Association for the MAT collection, please get in touch with ORHMA at email mat@orhma.com or call 905-361-0268.

How to Submit and File MAT reports & payment?

The City of Pickering has designated the Ontario Restaurant Hotel and Motel Association (ORHMA), as its agent, to collect the MAT from Accommodation Providers and remit it to the Town.

ORHMA provides Accommodation Providers with an online “MAT Reporting Tool” that calculates the MAT owing. Required data for this tool are:

• Name of the Property.
• Property MAT contact person name, email, and phone.
• Contact information of Manager, Accountant and Owner.
• Room nights available.
• Room nights occupied.
• Rooms Revenue.
• Rooms Revenue with Exemption/reasons.

MAT Reporting Tool Access

For access and information on how to remit payments, contact ORHMA by email mat@orhma.com or call 905-361-0268.

MAT & HST Calculations

MAT is subject to HST and accommodation providers must charge HST on MAT.

Sample calculation of the MAT and HST:

Total room charge/rate: $100

MAT 4 percent: $4

Net total of rooms charge and MAT: $104

HST 13 percent: $13.52

Total: $117.52

MAT Reporting Due Dates

Late Payments and Interest Charges

A late payment charge of 1.25% will be added on the unpaid amount of an instalment on the first day after the instalment due date, up to and including the date on which the tax is paid in full. 

All Municipal Accommodation Tax, interest, and penalties that are past due will be deemed to be in arrears and may be added to the tax roll for any real property in the City of Pickering that is registered in the name of the Provider to be collected in the same manner as property taxes and will constitute a lien upon the lands. 

Examples:

• https://www.whitby.ca/en/live/municipal-accommodation-tax-mat.aspx#What-is-the-percentage-for-the-MAT-in-Whitby
• https://www.markham.ca/permits-licences-taxes/property-taxes/municipal-accommodation-tax-mat
• https://www.barrie.ca/business-economy/municipal-accommodation-tax
• https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-accommodation-tax/hotel-providers/