Municipal Accommodation Tax (MAT)

Highlands East implemented a Municipal Accommodation Tax (MAT) on October 1, 2024. MAT is a tax that is levied on visitors rather than residents.

View the Highlands East MAT By-law

MAT Remittance

Licensed Short-Term Rental operators are required to remit MAT quarterly according to the schedule below.

MAT Remittance Schedule
QuarterMAT Billing CycleSubmission Due Date
Q1 January 1 to March 31 April 30
Q2 April 1 to June 30 July 31
Q3 July 1 to September 30 October 31
Q4 October 1 to December 31 January 31

MAT Program Key Contacts

Aspects of the MAT program are administered by Highlands East staff across multiple departments. Please read the FAQs below and direct further questions to the appropriate contacts:

General MAT Program Contact

General MAT Program inquiries can be sent to mat@highlandseast.ca.

STR Licensing Questions

Inquiries about Short-Term Rental Accommodations Licensing should be directed to str@highlandseast.ca where a Building/By-law Department staff member will assist with any issues or questions.

MAT Remittance and Tax Account Questions

Queries regarding making remittances and inquiries into your tax account should be directed to mat@highlandseast.ca where a Finance Department staff member will assist you.

Frequently Asked Questions

When did the MAT take effect?
The 4% MAT is in effect October 1, 2024. MAT applies to bookings that are received on or after October 1, 2024.

What types of accommodation are required to collect and remit the MAT?
The MAT is applicable to the accommodation of a legally established Dwelling Unit as well as use of any accessory building capable of human habitation in conjunction with but not independent or separately from the Dwelling or Shoreline Area Dwelling, that operates or offers a place of temporary residence, lodging or occupancy by way of concession, payment of a monetary fee, permit, lease, License or rental agreement or similar commercial transaction for a period of less than twenty-eight (28) consecutive nights throughout all or any part of a calendar year. Exclusions include bed and breakfast establishments, tourist establishments, tourist camping establishments, motels, hotels, hospitals, campgrounds or similar commercial accommodation use or couch surfing.

How much is the MAT? 
The MAT for Highlands East will be charged at the industry standard rate of 4%.

Is this a mandatory or volunteer tax?
The Municipal Accommodation Tax will be a mandatory charge as of October 1, 2024.

Is this a tax on Highlands East residents?
No. The MAT is levied on visitors staying in licensed Highlands East Short-Term Rental accommodations.

Is the MAT applicable to restaurants, attractions, etc.? 
No. The MAT is only applicable to the accommodation portion of licensed short-term rental accommodations in Highlands East.

What happens with the funds generated through MAT?
By law, half of the funds generated by the MAT will remain with the municipality to support tourism infrastructure development. The other half must be used to support tourism marketing and development. The County of Haliburton has created a municipal services corporation to manage the funds that are allocated to tourism marketing. This corporation is an industry-led destination marketing organization and will work in partnership with the municipality to align with tourism management efforts.

How do I remit MAT funds to the Municipality?

Every Short-Term Rental provider shall collect the MAT from every purchaser at the time the Short-Term Rental Accommodation is purchased. If the purchase of Short-Term Rental Accommodation is made through a Short-Term Rental Accommodation Broker, the Short-Term Rental Accommodation Broker shall collect the MAT at the time of purchase and remit it to the Provider.

Every Short-Term Rental provider shall, on or before the last day of the month following the end of the previous Quarter, remit to the Municipality, or its agent (Granicus), the amount of the MAT collected for the previous Quarter and submit the Quarterly statements in the form required by the Municipality, or its agent, detailing the number of the Accommodation sold, the purchase price of each Accommodation, the MAT amount collected and any other information as required by the Municipality, or its agent.

Will Airbnb collect and remit the MAT on my behalf?

Airbnb will not be collecting the MAT on behalf of Highlands East hosts. In the future, the Province may make it mandatory for booking platforms to take care of collection and remittance, but there is no timeline for this to happen.

For now, there is functionality to ‘add tax’ through the Airbnb platform, which hosts can read about here. To access the ‘add tax’ feature, hosts will need Airbnb’s professional tools. Learn more about Airbnb's professional tools.

What if I did not collect any MAT in the reporting period?
If you did not sell any accommodations during the reporting period, and therefore did not collect any Municipal Accommodation Tax, you will still be required to submit the MAT remittance form indicating that MAT was not collected during the reporting period.

What fees are subject to MAT?
The MAT by-law states that the 4% is applied only to the purchase price of the accommodation (room rate). 

Is the Harmonized Sales Tax (HST) charged on the Municipal Accommodation Tax?
Yes, if the Short-Term Rental 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.

Are there interest charges or penalties if I don’t remit MAT?
Yes. Interest will apply on any overdue remittance at a monthly rate of 1.25% from the first day after the tax remittance is due and interest will apply after each month thereafter on the principal amount owing during time as the default continues. Other penalties are listed in the MAT Bylaw 2024-39.

Is there an auditing process to verify submissions?
Yes. Highlands East or its agent (Granicus) may inspect and audit all books, documents, transactions and accounts of accommodation providers for the purposes of administering and enforcing MAT Bylaw 2024-39.

Do I need to show the MAT on the invoice or receipt?

Yes, every bill, receipt, invoice or similar document for the purchase of accommodation must have a separate line item identified as “Municipal Accommodation Tax” showing the rate at which the Municipal Accommodation Tax is calculated (4%) and the dollar amount of the Municipal Accommodation Tax.

If limitations with booking platforms or software do not allow the MAT to be calculated as a separate line item, the MAT can be worked into the room cost. In this case, a note on the receipt, invoice or statement is required and must include the MAT percentage (4%) as well as the dollar amount.

Are future bookings that were made prior to the enactment of the by-law exempt from the MAT?
Yes. Accommodation bookings made prior to October 1, 2024 are exempt. 

How do refunds and no shows affect the amount of MAT I remit?

If the MAT was added to an invoice that was paid by a guest, and you subsequently issue a full or partial refund on that accommodation charge, the customer should also be refunded the applicable amount of MAT that corresponds to the refund amount. If the refund occurs after you have remitted the MAT, you can adjust the MAT submission the following quarter noting the refund in your submission documentation.

If you experience “no-shows” and your policy is to charge a portion of the room rental as a penalty, then the MAT should also be charged to the no-show portion. If, however, you have a flat administrative fee that is charged for no shows no matter what the room rate, then the MAT does not need to be applied.

About the Legislation

The Municipal Accommodation Tax is a new revenue tool that the provincial government has given Ontario municipalities to further promote tourism as an economic driver.

On May 17, 2017, the Province enacted Bill 127, Stronger, Healthier Ontario Act, 2017, providing municipalities the authority to levy a transient accommodation tax (hotel tax). The Transient Accommodation Regulation 435/17 came into effect on December 1, 2017, outlining provisions for municipalities across Ontario to implement a Municipal Accommodation Tax (MAT).

The regulation applies if a municipality imposes a tax in respect of the purchase of transient accommodation in the municipality under Section 400.1 of the Municipal Act.

More information