Municipal Accommodation Tax

Legislation

Section 400.1 of the Municipal Act, 2001, S. O. 2001, c.25, provides that the council of a municipality may pass by-laws imposing a tax in respect of the purchase of transient accommodation within the municipality. Amendments were introduced as part of the 2017 Provincial Budget and received Royal Assent on May 17, 2017.

Ontario Regulation 435/17: Transient Accommodation Tax under the jurisdiction of the Municipal Act, 2001 came into effect December 1, 2017, allowing municipalities to levy a Municipal Accommodation Tax.

Exemptions

The Municipal Accommodation Tax imposed under this By-law does not apply to accommodation provided by:

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 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 license 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 hospices;

f) A hotel or motel used by The County or its agents for shelter purposes;

g) A treatment center 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 shelters 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) Every boat or water vessel moored at a marina;

l) Employers to their employees in premises operated by the employer; and

m) A hospitality room in an establishment that may or may not contain a bed and is used for displaying merchandise, holding materials, or entertaining.

By-law 2023-56 Municipal Accommodation Tax