New Municipal Accommodation Tax Takes Effect on September 1

Aug 31, 2018

The City of Greater Sudbury’s Municipal Accommodation Tax (MAT) will come into effect on September 1, 2018.

The mandatory four per cent tax, which will be charged on all short-term overnight accommodations, will generate revenue to support ongoing infrastructure development in Greater Sudbury, and will contribute to the community economic development strategic goal of becoming “One of Ontario’s Top Destinations.”

The MAT will apply to hotels, motels, bed and breakfasts, online travel sites and short-term home rentals such as those sold through AirBNB, within the municipality.  

In accordance with provincial regulations, half of the MAT net revenue will be provided to a non-profit corporation, The City of Greater Sudbury Community Development Corporation (GSDC), to increase hotel occupancy rates and bring more visitors to the city each year.

The City will put its share of the proceeds toward funding part of the debt for the new Kingsway Entertainments District Arena/Event Centre, as approved during the 2018 Budget.

The Province of Ontario granted municipalities the authority to implement a tax on transient accommodation as part of its 2017 budget. City Council approved bylaw 2018-127 to establish the MAT at its July 10, 2018 meeting.

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