The City of Toronto issued a reminder to all short-term rental operators to register their properties before the end of the year or face a fine.
Short-term rental operators who are renting homes or rooms for periods of less than 28 consecutive days are required to be registered with the City of Toronto by December 31, 2020, and starting the next day, on January 1, operators must start to collect the Municipal Accommodation Tax (MAT).
Operators are being asked to register their property and pay the $50 fee as soon as they can in order to avoid last-minute delays towards the year’s end.
Those who do not comply with the new regulations could face a fine of up to $100,000.
“You may also be liable to pay a special fine that a court deems is greater than any revenue that you may be gaining from your business, as well as a fine of up to $10,000 for each day the offence continues,” says the City.
You may also be charged a fine for several other offences, including advertising for an unregistered property or renting a place for more than 180 days.
Anyone who wishes to rent out their home for short-term stays in Toronto is legally required to register their property to do so.
Operators are only able to short-term rent their principal residence – the residence where they personally reside which is listed on their personal identification, taxes and insurance.
The new MAT payment will be due from operators on a quarterly basis, within 30 days of the end of the completed quarter, according to the city.