Municipal Accommodation Tax (MAT)

Overview

The Town of Essex is exploring the introduction of a Municipal Accommodation Tax (MAT), a small charge on overnight stays at local hotels, motels, and other short-term accommodations. The tax payment is the responsibility of the visitor, NOT the residents or accommodation owners/operators. Revenues generated through MAT would directly support tourism initiatives, community events, and the enhancement of local amenities. At this time, Council has not implemented the MAT in the Town of Essex. Further discussion and exploration will be held before a decision is made by Council.

Why We Are Considering MAT

Introducing MAT would create a dedicated funding stream to position the Town of Essex as a premium tourism destination while reducing reliance on property taxes. Many municipalities throughout Ontario have adopted MAT to reinvest in their communities, and the Town of Essex has recognized the opportunity to do the same. The funds would go toward projects and services that benefit both residents and visitors, including downtown enhancements, cultural programming, and recreational amenities.

Frequently Asked Questions

What is MAT?

MAT is a tax charged to visitors on overnight stays at hotels, motels, and other short-term accommodations within the Town of Essex. This tax was introduced in Ontario in 2017 as a tool for municipalities to generate additional revenue for tourism-related activities and projects. Since this time, roughly 70 of the 444 municipalities across the province have implemented or are in the process of implementing a MAT. Some examples include South Bruce Peninsula, the Town of the Blue Mountains, Midland, Huntsville, Wasaga Beach, Niagara Falls, London, Kingston, Ottawa, Stratford, St. Catherine’s, and the City of Windsor. Currently, the majority of the local municipalities in the County of Essex are investigating the implementation of a MAT.

How much would the MAT cost visitors?

Historically, most municipalities have set the fee at 4%-6% and it is then collected by the accommodation provider at the time of booking or check-in and remitted to the municipality on a regular basis. On average, if the nightly stay in the Town of Essex is $269.00 per night, the potential MAT would be an additional charge to the visitor of approximately $10-$16 per night.

Who pays MAT?

Visitors staying at certain accommodations in the Town of Essex would pay the tax. Residents do not pay MAT unless they choose to stay at a local accommodation. In general terms, the tax applies to overnight stays, at certain accommodations, of 29 days or less.

How will MAT revenues be used?

MAT revenues would be reinvested into tourism promotion, community programming, and capital projects that enhance the Town as a tourism destination and improve quality of life for residents. The provincial regulation stipulates that the municipality can retain up to 50% of the MAT revenue. The remainder is distributed to an eligible, not-for-profit tourism entity to be used exclusively to promote tourism in the area. In the case of the Town of Essex, that tourism entity is proposed to be Tourism Windsor Essex Pelee Island (TWEPI).

The 50% of funds retained by the Town of Essex can be used at its discretion for services and amenities, thereby reducing the burden on local taxpayers. However, these funds are typically used to enhance tourism related amenities while benefitting residents. This could include revenue support for parks, beaches, trails, facilities, and more.

Questions?

For questions related to the Municipal Accommodation Tax, please contact the Economic Development Department.