FAQs

The MAT is still in the proposal stage. If approved by Council, the earliest a MAT would be implemented is January 2025. 

The most common MAT rate established by Ontario municipalities has been 4%. If implemented, Town staff would recommend consistency with this rate, but will also consider public feedback in drafting the recommendation to Council.  Ranges from 2% to 6% have been proposed and implemented elsewhere.  

Yes. If implemented, the MAT is a mandatory tax. It must be paid by visitors to the accommodation host at the same time the rest of the accommodation fee is paid. The host must remit all MAT revenue collected to the municipality on a regular basis. 

Town staff would provide access to online forms, program information, and one-on-one discussions with accommodation providers before, during and after the implementation of a MAT. Remittances would be proposed to be done on a quarterly or semi-annual basis rather than monthly, in order to reduce the reporting burden.

At least 50% of the net revenue raised by the MAT must be directed to a not for profit organization with a tourism mandate, referred to as a Destination Marketing Organization (DMO). A reasonable amount of the MAT may be used to cover the administrative costs of running the program, to ensure there is no cost to property taxpayers. The remaining revenue may be used at Council’s discretion. In other municipalities, this revenue has been used for things like additional tourism initiatives or public amenity improvements. Some municipalities have created committees with representatives from the accommodations and tourism sector to provide advice on how the MAT revenue can most effectively be used. 

Assuming a 50% occupancy rate for the local hotel and motels in Greater Napanee and an average nightly rate of $124, the estimated annual revenue for a MAT is $180,000. Of this, an estimated $18,000 (10%) would be allocated to administrative costs, $81,000 would be directed to the Town’s DMO partner, and $81,000 would be used for local purposes to be determined by Council. These figures are estimates only, but it is assumed they would be higher if short term accommodations were to be integrated into the program and as more hotel accommodations are opened in the community.  

A MAT is a tool available to municipalities to generate revenue from a different source than property taxes. The MAT recognizes that there is an economic benefit to supporting tourism and attracting visitors to the community, and also recognizes that visitors to the community utilize taxpayer funded amenities while they are in the area. In municipalities that have a high proportion of visitors compared to permanent residents, the MAT can help offset the strain on local infrastructure without increasing the local property taxes.