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*Update: MAT By-law changes will be in effect on June 1, 2025, not May 1, 2025, as previously reported.
NIAGARA FALLS, ON - Effective June 1, 2025*, the City of Niagara Falls will implement changes to the Municipal Accommodation Tax By-law (By-law 2025 – 009) as approved by City Council on January 14, 2025.
The Municipal Accommodation Tax is a mandatory tax imposed by City Council on the purchase of short-term accommodation (for a continuous period of 28 days or less) at hotels, motels, inns, bed and breakfasts and vacation rentals operating in the City of Niagara Falls. The purpose of the MAT is to support and grow the tourism industry in the City of Niagara Falls and to improve the livability of the City for the residents of Niagara Falls.
The goals of the MAT include, but are not limited to:
- Increasing tourism visitation;
- Increasing total tourism spend;
- Increasing tourism asset development and tax assessment; and
- Undertaking environmental sustainability initiatives in support of the tourism industry and the broader community.
The most significant changes in By-law 2025- 009 include:
- The MAT will be applied based on the star rating of the Accommodation Property (hotels, motels, inns, bed & breakfasts or vacation rentals) in the following amounts per night:
- Five (5) Star – Seven Dollars ($ 7.00)
- Four (4) Star – Six Dollars ($ 6.00)
- Three (3) Star – Five Dollars ($ 5.00)
- Two (2) Star – Four Dollars ($ 4.00) and
- Unrated properties – Five Dollars ($ 5.00)
- The MAT for all rooms will be based on a property's star rating and applied based on the date of stay, not the booking date.
- All complimentary rooms must be included in the Municipal Accommodation Tax Remittance.
- If any guests exceed the 28-day stay (extended stay guests) and there is no formal landlord-tenant relationship, a MAT amount based on the property's star rating must be submitted.
The Tiered Star Rating MAT System
Since its introduction in Niagara Falls, the MAT (Municipal Accommodation Tax) was originally charged at a flat rate of $2.00 per occupied room. However, there was growing concern that this approach was not equitable, particularly when applied to hotels with varying star ratings and nightly rates. To address these concerns and to align with market trends—while also aiming to increase revenue—the tiered star rating system was introduced. This system maintains the consistency of a fixed rate rather than a percentage-based model, but now adjusts the amount charged based on the star rating of the property. Star ratings are sourced from a major global online travel agency, relying on self-reported data provided by the hoteliers themselves.
To learn more, please visit niagarafalls.ca. The entire By-law can be accessed by visiting the By-laws section of the City’s website at niagarafalls.ca/city-hall/by-laws/default.aspx
For more information, contact:
Joel Stapley
Supervisor of Accounting
City of Niagara Falls
[email protected]
