Huntsville updates Accommodation Tax Rules

The town can assess penalties up to $50,000

Huntsville General Committee approved changes to the Town’s Municipal Accommodation Tax (MAT) By-law, in the April 30, 2025, General Committee meeting.

The Town implemented the MAT program in 2018, following the 2017 provincial government provisions allowing municipalities to implement it as a source of funding to promote tourism.

Huntsville rates include charging 4% tax, plus 1.25% interest penalties for payments that are in arrears for short-term accommodations, such as hotels, motels, lodges, inns, bed and breakfasts, and short-term rentals.

Staff reported that there have been changes since the program was first implemented and recommended updates to the By-law for better clarification and guidelines for both participants and staff.

According to the staff report, changes to the By-law include adding and modifying definitions, like including ‘Provider’ in addition to property ‘Owner,’ updates about implementation of interest and penalties, provide Owners/Providers with greater clarity about timing of reporting, specifying ‘Accommodations’ as roofed dwellings with electricity and water services, short-term rentals refers to residential dwelling units only, and owners ceasing the operation must notify the Town in writing.

‘Automatic Assessment’ allows the Town to determine the amount of MAT owed, including interest, if the owner doesn’t provide the statements as required.

The report adds that the Town can “provide an update for alternative methods of enforcement penalties through the court system to seek a higher fine on non-compliance.”

According to the By-law, the Town can also add MAT arrears interest penalties to the tax roll on properties like they do with property taxes “and such arrears shall constitute a lien upon the lands.”

The staff report indicates, “Every individual who contravenes any provision of this By-law is guilty of an offence and on conviction is liable to a fine not exceeding $5,000.” Those other than individuals can be subject to fines up to $25,000, and corporations up to $50,000.

The staff report continues, “As the MAT program is still relatively new for the Town of Huntsville and for municipalities in Ontario as a whole, there are changes that will be required from time to time to the By-law to ensure that the program can be effectively delivered.”