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The City of Orillia passed By-Law 2019-120 to implement a mandatory 4% Municipal Accommodation Tax (MAT) effective September 1, 2020. The MAT will apply to the purchase of the accommodations provided for a continuous period of 30 days or less.
The MAT must be identified as a separate item or charge on each bill, receipt invoice etc.
Should you have any questions, please feel free to contact Orillia and Lake Country at OrilliaMAT@orillialakecountry.ca
For visitors - frequently asked questions
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How much is the Municipal Accommodation Tax and what does it get applied to?
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The Municipal Accommodation Tax is 4%. It comes into effect September 1, 2020 and is only applicable to the room portion of the costs associated to overnight accommodations.
All other revenues generated from the accommodation services; whether sold individually or included in a room package; are excluded from the Municipal Accommodation Tax, including but not limited to, meeting room rental, food and beverage, room service, laundry services, internet access, parking etc.
The HST is applicable to the funds received from the Municipal Accommodation Tax if the business is an HST registrant.
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Why do I have to pay this tax?
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| The Municipal Accommodation Tax is a mandatory tax imposed by City Council through By-Law 2019-120 - A By-law to Impose Municipal Accommodation Tax on the purchase of transient accommodation in the City of Orillia. |
Can I refuse to pay this tax?
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| No you cannot refuse to pay this tax. The Municipal Accommodation Tax is mandatory and must be paid to the accommodation operator at the same time that you pay for the booking. |
Do I have to pay the MAT if I booked my stay prior to September 1, 2020?
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| If your accommodation was booked and paid for prior to September 1, 2020, the tax will not be applicable. If it was paid for on September 1, 2020 or onwards, the tax is applicable. |
Under what authority does the Provider have to charge/collect the MAT?
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| City of Orillia By-Law 2019-120 - A By-law to Impose Municipal Accommodation Tax on the purchase of transient accommodation in the City of Orillia. |
I'm staying in an AirBnB, do I have to pay this tax?
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| Yes, as of September 1, 2020 when booking your accommodations on AirBnB you will pay 4% MAT of your total cost. |
What happens with the funds generated through the Municipal Accommodation Tax?
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Funds generated through the MAT are shared 50% with a tourism entity (Orillia & Lake Country Tourism) and 50% with the City of Orillia per the legislative requirements.
Orillia & Lake Country Tourism invests in destination marketing and program development aimed at enhancing the visitor experiences in Orillia and the region.
Orillia City Council has passed a policy that stipulates 100% of the city portion of the MAT must be used to enhance tourism in Orillia.
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For accommodation providers - frequently asked questions
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How much is the Municipal Accommodation Tax and what does it get applied to?
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| The Municipal Accommodation Tax is 4%. It comes into effect September 1, 2020 and is only applicable to the room portion of the costs associated to overnight accommodations.
All other revenues generated from the accommodation services; whether sold individually or included in a room package; are excluded from the Municipal Accommodation Tax, including but not limited to, meeting room rental, food and beverage, room service, laundry services, internet access, parking etc.
The HST is applicable to the funds received from the Municipal Accommodation Tax if the business is an HST registrant.
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Is HST charged on top of the MAT?
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| Yes, 13% HST is charged on top of the MAT and is covered under Section 154 of the Excise Tax Act (R.S.C., 1985, c. E-15). |
How do I remit the Municipal Accommodation Tax that I have collected?
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| The City of Orillia has authorized Orillia & Lake Country Tourism (OLC) to collect and administer the tax.
The remittance process will include a monthly remittance form which is available on the OLC website and payments can be made through EMT, EFT, Online Bank Bill Payment or by cheque. Submissions and payment are due within 15 days of the previous month.
For more information contact OrilliaMAT@Orillialakecountry.ca
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Is there an auditing process to verify monthly submissions?
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| Yes, both the City of Orillia and OLC will routinely select submissions for audit. The verification process will include a 3rd party auditor assigned by, and paid for by the respective governing authority. |
Is this a mandatory or voluntary tax?
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| Yes, the Municipal Accommodation Tax is a mandatory tax and must be paid to the accommodation operator at the same time that you pay for the booking. |
Are any guests exempt from paying the MAT?
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- Accommodations that are rented for a period of more than 30 days
- Accommodations that are paid for by employees of the Crown receiving a "government rate" for the accommodation
- Accommodations that are paid for by employees of the School Board receiving a "school board rate" for the accommodation
- Accommodations provided as shelter
- Accommodation supplied by employers to their employees in premises operated by the employer
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Under what authority does the Provider have to charge/collect the MAT?
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| City of Orillia By-Law 2019-120 - A By-law to Impose Municipal Accommodation Tax on the purchase of transient accommodation in the City of Orillia. |
What happens if the guest doesn't show up for its reservation?
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The by-law reads "A Purchaser shall, at the time of purchasing Accommodation, pay the Municipal Accommodation Tax in the amount of four (4) per cent of the Purchase Price of Accommodation provided for a continuous period of 30 days or less provided in a hotel, motel, motor hotel, lodge, inn, bed and breakfast, dwelling unit or any place in which Accommodation is provided"
Therefore, if the guest is being charged for the accommodation (no show included) the MAT should be collected and remitted, if not paying for the accommodation but rather a cancellation charge then it would not apply.
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What about rooms that were booked prior to September 1, 2020?
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| If the accommodation was booked and paid for prior to September 1, 2020 the MAT will not be applicable. If it was booked before September 1, 2020 but paid for on September 1, 2020 or onwards, the tax is applicable. |
What happens if I'm late in submitting payment?
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| Late payment fees will be charged at a rate of 1.25 per cent on the first day of default and the first of each month until paid. |
What if a refund was issued to a guest after submitting a return?
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| Adjustments from prior reporting periods can be made in a future return. |
What if I did not collect any MAT in the reporting period?
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| If no tax was collected you will still be required to submit the return indicating that no tax was collected in that month. |
What happens with the funds generated through the Municipal Accommodation Tax?
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Funds generated through the MAT are shared 50% with a tourism entity (Orillia & Lake Country Tourism) and 50% with the City of Orillia per the legislative requirements.
Orillia & Lake Country Tourism invests in destination marketing and program development aimed at enhancing the visitor experiences in Orillia and the region.
Orillia City Council has passed a policy that stipulates 100% of the city portion of the MAT must be used to enhance tourism in Orillia.
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As per Chapter 954, City of Orillia owned or leased properties are smoke and vape free (effective May 15, 2019). Smoking or vaping any tobacco, cannabis, e-liquid and herbal material used for water pipes is prohibited in the following locations owned or leased by the City of Orillia:
- any property upon which is located a municipal building, park or beach
- any parking lot, trail, walkway, or lane
- any dock or pier
- on or within a vehicle located on City-owned or leased property
- on or within a boat located or moored on City-owned or leased property
City of Orillia owned or leased properties include: all municipal properties, City parks, beaches, trails, parking lots, 70 Front St. N. (Metro Plaza), Nordia (2 Hunter Valley Rd.), Port of Orillia, Stephen Leacock Museum, Orillia Opera House and Orillia Public Library.
For specific locations, view the detailed map.
For more information visit our frequently asked questions
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