A municipal accommodation tax (MAT) is a tax paid by visitors on short term overnight accommodations and remitted to the municipality. At least 50% of the net revenue is directed to a destination marketing organization with a mandate to promote tourism and marketing within the municipal boundaries. The other 50% can be used by the municipality for investments to enhance tourism, community amenities, or other municipal purposes.
Municipal Accommodation Tax
Effective October 1, 2025
Council approved the introduction of a Municipal Accommodation Tax (MAT) to support tourism promotion and enhance local services. The new program will come into effect on October 1, 2025.
The MAT will apply at a rate of 4% per room night, aligning Bracebridge with neighbouring communities such as Huntsville and Gravenhurst. This implementation timeline provides local accommodators with time to prepare and establish the necessary internal processes for collection.
To ensure transparency and effective reinvestment, the Town plans to establish a municipal service corporation (MSC) to manage and distribute 50% of the MAT revenues to support tourism promotion in Bracebridge. The MSC board is expected to have a majority of members from the local accommodation sector, providing a direct voice in how tourism investments are made. The remaining 50% of the MAT revenue will be retained by the Town to support community services and infrastructure, including visitor-related projects.
Community Engagement
The Town undertook a community engagement process last summer to seek feedback from the local business and tourism sectors. Through online surveys and stakeholder meetings, local accommodators and tourism operators provided valuable input on the proposed MAT, its timing, and structure. This feedback played a key role in developing a model that reflects local priorities and aligns with best practices across the region.
Frequently Asked Questions
How would a MAT affect residents?
There is no direct effect to existing residents of the community as the MAT would be applied only on short-term lodging and is geared towards visitor lodging.
Do surrounding municipalities charge a MAT?
Yes. Several surrounding municipalities have a MAT in place including:
|
Municipality |
MAT Structure |
|
City of Barrie |
4% (moving to 6%) |
|
Town of Gravenhurst |
4% |
|
Town of Huntsville |
4% |
|
City of Niagara Falls |
$2.00 per room night |
|
City of Orillia |
4% |
|
City of Toronto |
6% |
|
City of Thunder Bay |
4% |
Currently, Bracebridge is the only urban centre in Muskoka that does not levy the tax.
Would a MAT increase the cost of local accommodations?
The tax would be applied to the rate of the room/lodging charged by the property owner in a hotel, motel, inn, short-term rental, cottage, etc. It would be shown on invoices/billing as a tax much like the HST.
Contact Us
Town of Bracebridge
1000 Taylor Court
Bracebridge, ON P1L 1R6
Phone: (705) 645 5264