Municipal Accommodation Tax

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Consultation has concluded

Recent legislative changes through the Province of Ontario have provided single-tier and lower-tier municipalities the option to implement a tax on transient accommodation. Should the City choose to implement a tax, it would have the flexibility to determine the design of the tax, including its rate(s), administration, collection and the scope of its application.

The Province is encouraging municipalities to consider how a new tax on transient accommodation may bring greater transparency and consistency to existing practices through the sharing of funds with a tourism organization, application of a uniform rate, and clearer labeling of the charge on hotel bills. This is an opportunity for cities to strengthen their partnerships with their tourism partners to ensure that the tourism sector continues to be competitive.

- Ministry of Tourism, Culture and Sport

Recent legislative changes through the Province of Ontario have provided single-tier and lower-tier municipalities the option to implement a tax on transient accommodation. Should the City choose to implement a tax, it would have the flexibility to determine the design of the tax, including its rate(s), administration, collection and the scope of its application.

The Province is encouraging municipalities to consider how a new tax on transient accommodation may bring greater transparency and consistency to existing practices through the sharing of funds with a tourism organization, application of a uniform rate, and clearer labeling of the charge on hotel bills. This is an opportunity for cities to strengthen their partnerships with their tourism partners to ensure that the tourism sector continues to be competitive.

- Ministry of Tourism, Culture and Sport

Consultation has concluded

  • UPDATE: January 1, 2019

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    Henceforth, the tax will be known and referred to as the Municipal Accommodation Tax.

    A copy of By-law 2018-104 is available at niagarafalls.ca.


  • UPDATE: April 24, 2018

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    On April 24, 2018 Niagara Falls City Council approved implementation of a Transient Accommodation Tax of $2.00 per room per night of occupancy commencing January 1, 2019. The Transient Tax will apply to all accommodation in the City of Niagara Falls. A Niagara Falls Hotel Association (NFHA) will be established to act as the eligible tourism entity under the regulation to distribute the funds as outlined in the Council report.


    The Transient Accommodation Tax was approved for a five (5) year term, however, after January 1, 2022 (3 years), the partners agree to conduct a review of the Transient Accommodation Tax and related impact on tourism and may retain a consultant to conduct an impact study to assist in determining its effectiveness.

    If you have any questions or comments, please email transientaccommodation@niagarafalls.ca