FAQs For Accommodation Guests
City Council approved the implementation of a mandatory four per cent Municipal Accommodation Tax (MAT) effective September 1, 2018. In accordance with bylaw 2018-127, MAT will apply to the purchase of accommodations provided for a continuous period of 30 days or less. Effective January 1, 2025 the amount of the MAT will change to six per cent.
1. What is the Municipal Accommodation Tax (MAT)?
The Municipal Accommodation Tax is a fee imposed on accommodations of 30 consecutive days or less. The current MAT rate is four per cent. Effective January 1, 2025 the rate will change to six per cent.
2. How is the MAT applied to the purchase price of accommodations?
The MAT is only applied to the purchase price of the accommodation (i.e. room fee) and it does not apply to amenity fees or service charges.
3. Is the payment of the MAT optional?
No, the MAT is mandatory. It must be paid at the same time you are paying the accommodation provider.
4. Why do I have to pay the MAT?
Payment of the Municipal Accommodation Tax is mandatory and is authorized by a City Bylaw in accordance with section 400.1 of the Municipal Act, 2001 and Ontario Regulation 435/17.
5. If I’m travelling for medical purposes, do I have to pay the MAT?
Yes, there is no exemption from the MAT for medical related travelling. Many accommodation establishments (including those in Greater Sudbury) offer compassionate rates that are applied at their own discretion.
The Ontario Ministry of Health provides funding through the Northern Health Travel Grant for eligible applicants, based on the distance to their closest medical specialist or Ministry funded health care facility able to provide the required health care services. For more information visit their website.
6. Do I still need to pay the MAT if I do not show up for the reservation?
If you are charged for the accommodation whether or not you actually occupy it, then MAT will apply. If you do not cancel your room reservation and you are charged for accommodation (no-show included) the MAT will be charged. If you are not charged for the accommodation but subject to a cancellation fee, the MAT would not apply.
7. What happens with the money collected through the MAT?
Fifty per cent of the net revenue from the MAT will go to the municipality to support City programs and services, in accordance with Council direction. The first $800,000 of these funds will be allocated toward the repayment of Event Centre dept. Any remaining funds will be contributed to the tax rate stabilization reserve. The other 50 per cent of the net revenue will go to the City of Greater Sudbury Community Development Corporation. As an eligible tourism entity (ETE) the GSDC will administer the funds for tourism promotion and development, including a focus on attracting people to the city, support bid opportunities and more.