Municipal Accommodation Tax

Effective January 1, 2027, the Township of Centre Wellington will implement a Municipal Accommodation Tax (MAT) on eligible overnight stays at local hotels, motels and other short-term accommodations.

Visitors pay the MAT, which gives those enjoying Centre Wellington’s amenities, events, and attractions an opportunity to contribute back to our community. Accommodation providers collect the tax at the time of booking or payment and remit it to the Township quarterly.

MAT revenues will be reinvested in tourism initiatives and in maintaining and improving Township infrastructure assets that benefit both visitors and residents. This investment will support Centre Wellington’s visitor economy, help attract jobs and investment and reduce reliance on property taxes to support these initiatives.

A new Township-owned Municipal Services Corporation (MSC) been implemented. The MSC will administer the MAT program and support efforts to optimize the value of tourism for the community.

Consistent Revenue for Communities. A MAT generates reliable income from overnight visitors, ensuring stable funding for local projects and improvements.
Support for Tourism Services. Funds from the MAT support tourism marketing, infrastructure, and experience development. It can also be used to fund parking management, event infrastructure, parks, washrooms, road repairs, and traffic management – services typically funded by property taxation.
Offsets Tourism Impact. The Township's 5% MAT, set by Council will help balance the impact of tourism and funds community amenities for everyone’s benefit.

On April 27, 2026, Township Council approved a Municipal Accommodation Tax rate of 5%.

This rate reflects a modest premium that recognizes the Township’s established visitor economy, growing overnight demand, and seasonality, while remaining competitive within the regional tourism marketplace.

Report to Council

Effective January 1, 2027, Visitors pay the fee as part of the accommodation invoice for eligible short-term stays (28 days or less) at accommodations such as hotels, motels, resorts, bed and breakfasts, and vacation rentals. The accommodation provider collects the fee from the visitor and remits it as required.

MAT revenues must be reinvested into tourism promotion, community programming, and capital projects that enhance the Township as a tourism destination and improve quality of life for residents.

The provincial regulation stipulates that the municipality can retain up to 50% of the MAT revenue. The remainder is distributed to an eligible, not-for-profit tourism entity for use exclusively to promote tourism in the area. In Centre Wellington, this is the Centre Wellington Economic Development and Tourism Municipal Services Corporation and it is governed by a Board of Directors.

Options include:

Marketing and promotion of the Township to visitors
Beautification of downtown and public spaces
Hosting or expanding local festivals and events
Developing and/or expanding tourism experiences or attractions across Centre Wellington
Supporting local businesses that depend on tourism
Infrastructure Improvements

Under Ontario Regulation 435/17 (Transient Accommodation Tax) of the Municipal Act, 2001, the Township must share a minimum of 50% of MAT revenues (less the municipality’s reasonable costs of collecting and administering the tax) with an entity that is designated as an Eligible Tourism Entity.

An Eligible Tourism Entity is defined through Ontario’s MAT framework as a nonprofit organization whose mandate includes the promotion of tourism in a specific municipality. Examples include Destination Marketing Organizations (DMOs) and certain local tourism associations.

Council approved establishing a not-for-profit Municipal Service Corporation (MSC) to serve as a DMO in Centre Wellington. Learn more about the the Centre Wellington Economic Development and Tourism Municipal Services Corporation here.