Municipal Accommodation Providers Frequently Asked Questions

  • 01. How much is the Municipal Accommodation Tax?

    The Municipal Accommodation Tax rate is TWO DOLLARS ($2.00) flat fee per night of occupancy
    and must be applied to accommodations provided for a continuous period of 30 days or less. The
    tax is applied to only the accommodation and should not be applied to other fees such as valet
    parking, laundry service, breakfast etc.

    Categories: Municipal Accommodation Providers

  • 02. When do I start collecting the tax?

    The by-law shall come into force and take effect on January 1, 2019 and Municipal
    Accommodation Tax must be collected beginning January 1, 2019.

    Categories: Municipal Accommodation Providers

  • 03. Is this a mandatory or voluntary tax?

    The Municipal Accommodation Tax is a mandatory tax and must be paid to the providers of the
    transient accommodation from the purchaser at the time the accommodations are purchased.

    Categories: Municipal Accommodation Providers

  • 04. Under what authority does the provider have to charge/collect the Municipal Accommodation Tax?

    City of Niagara Falls By-law No. 2018104 - A By-law to impose Municipal Accommodation Tax
    on the purchase of short-term accommodation within the City of Niagara Falls.

    Categories: Municipal Accommodation Providers

  • 05. Are any guests exempt from the Municipal Accommodation Tax?

    Municipal Accommodation tax applies to all accommodations except:


    a. the Crown, every agency of the Crown in right of Ontario, and every authority, board,
    commission, corporation, office, organization of persons a majority of whose directors,
    members or officers are appointed or chosen by or under the authority of new Lt. Gov. in
    Council or a member of the Executive Council;


    b. every board as defined in subsection 1(1) of the Education Act, R.S.O. 1990, c. E.2;

     

    c. every university in Ontario and every college of applied arts and technology and postsecondary institution in Ontario, whether or not affiliated with the university, the enrolments of which are counted for the purposes of calculating annual operating grant entitlements from the Crown on accommodations provided to students while a student is registered and attending the institution;


    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, R.S.O. 1990, c.
    P.40, and every private hospital under the authority license issued under the Private Hospitals
    Act, R.S.O. 1990, c. P.24;


    e. every long-term care home as defined in subsection 2(1) of the Long-Term Care Homes Act,
    2007, S.O. 2007, c. 8, retirement home, and hospice;


    f. every treatment center that receives provincial aid under the Ministry of Community and Social
    Services Act, R.S.O. 1990, c. M.20; every house of refuge, or watching for the reformation of
    offenders; every charitable, non-profit philanthropic corporation organized as shelters for the
    relief of the poor or for emergency;


    g. every tent or trailer site supplied by a campground, tourist or trailer park;


    h. every accommodation supplied by employers to their employees in the premises operated by
    the employer; and


    i. every hospitality room in an establishment that does not contain a bed and is used for
    displaying merchandise, holding meetings, or entertaining.

    Categories: Municipal Accommodation Providers

  • 06. Does the Municipal Accommodation Tax get applied to a rental of a hotel's boardroom or banquet room?

    No. The tax is only applied to a room that is being used for accommodation. However, the tax
    is exempt when a room that does not contain a bed and is being used for displaying
    merchandise, holding meetings, or entertaining.

    Categories: Municipal Accommodation Providers

  • 07. Is HST charged on top of the Municipal Accommodation tax?

    Yes, HST is charged on top of the Municipal Accommodation Tax. The Municipal Accommodation Tax is deemed part of the consideration for the supply of the transient
    accommodation. The determination of which items are to be included in the base for HST is
    covered under Section 154 of the Excise Tax Act (R.S.C., 1985, c. E-15).

    Categories: Municipal Accommodation Providers

  • 08. If a guest's stay begins prior to January 1, 2019 and ends after January 1, 2019, do I charge the TAT when their stay begins?

    The tax must be charged beginning January 1, 2019 only. Any nights prior to January 1, 2019
    should not be charged the MAT.

    Categories: Municipal Accommodation Providers

  • 09. How do I remit taxes collected?

    You must register your transient accommodation establishment by completing a Registration
    Form. Once your establishment is registered, you must complete a Remittance Form indicating the number of rooms booked for the month and remit payment to the City of Niagara
    Falls. Remittance forms are available online at niagarafalls.ca/transientaccommodation.


    Payments can be made by:


    Electronic Funds Transfer (EFT):
    To get set up for EFT please email [email protected] For payments made by EFT,
    the form may be submitted by email to [email protected] or alternatively be mailed.

    Categories: Municipal Accommodation Providers

  • 10. When do I have to remit my return to the City on the tax I collect?

    You will be required to submit a Municipal Accommodation Tax Remittance Form and payment at
    the end of each month for the tax collected in the previous month.

    Categories: Municipal Accommodation Providers

  • 11. What happens if I am late in submitting my return?

    Late payment fees will be charged at a rate of 1.25 per cent on the first day of default and
    on each month thereafter in which the default continues.

    Categories: Municipal Accommodation Providers

  • 12. What if a refund was issued to a guest after submitting the return?

    Adjustments from prior reporting periods can be made in a future return.

    Categories: Municipal Accommodation Providers

  • 13. What if I did not collect ant Municipal Accommodation Tax in the reporting period?

    If no tax was collected you will still be required to submit the return indicating that no tax was
    collected in that month.

    Categories: Municipal Accommodation Providers

  • 14. Will the City be auditing the transient accommodation providers?

    The City has the authority to inspect and audit all books, documents, transactions and
    accounts of accommodation providers. Accommodation providers must keep books of
    account, records and all documents related to the sale of accommodations and the amount
    of the Municipal Accommodation Tax collected and remitted to the City.

    Categories: Municipal Accommodation Providers

  • 15. What if I have more questions?

    If you need further assistance, e-mail us at [email protected] with
    any questions.

    Categories: Municipal Accommodation Providers