Municipal Accommodation Tax

On August 9, 2022, Council approved By-law 2022-093, a bylaw to implement the Municipal Accommodation Tax (MAT) in the Town of Gravenhurst.  This new Tax became effective on January 31, 2023 at a rate of 4%. 

This tax applies to all hotels, motels, bed & breakfasts, licensed short-term rentals, and roofed accommodation offering less than 30-day continuous stays as of the effective date. Any accommodation bookings made and paid before the effective date are not subject to the tax.

The Municipal Accommodation Tax is not a tax on local businesses.  The tax is collected from the visitor and is applied to the accommodation charge of their stay only and not to other fees such valet parking, breakfast, laundry or other amenity charges.  

The Municipal Accommodation Tax must be visible on the invoice as a separate charge on each accommodation portion. 

Frequently Asked Questions & Resources

Municipal Accommodation Tax Fund Guidelines (Tourism Gravenhurst Grants) - the next intake for Tourism Gravenhurst Grants will be June 1 - 30, 2024

Municipal Accommodation Tax Frequently Asked Questions for Accommodators – Updated March 5, 2024

Municipal Accommodation Tax Frequently Asked Questions for Guests (Updated March 5, 2024)

Town of Gravenhurst MAT Information Session Presentation

Town of Gravenhurst MAT Implementation Letter for OTA's 

Town of Gravenhurst MAT Front Desk Notice for Accommodators

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 force 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 Municipal Act 400.1 of the Act. 

On August 9, 2022 Gravenhurst Town Council passed By-law 2022-093 to implement the Municipal Accommodation Tax.