Tourism Levy Regulation

(Consolidated up to 7/2024) ALBERTA REGULATION 398/87 Tourism Levy Act TOURISM LEVY REGULATION Table of Contents 1 Definitions 1.1 Interpretation 2 Collection periods 2.1 Registration 2.2 Exemption from payment of tourism levy 2.4 Prescribed fees 2.5 Collection and remittance by online broker 3 Remittance of tourism levy 4.1 Refund of tourism levy 5 Interest 6 Security 7 Records 7.1 Online broker information 8 Invoice 8.1 Service 9 Coming into force Definitions 1 In this Regulation, (a) “Act” means the Tourism Levy Act ; (a.1) “band” means a band as defined in the Indian Act (Canada); (a.2) “calendar quarter” means a period of 3 months beginning on the first day of January, April, July or October; (b) “collection period” means the applicable period under section 2; (c) “identification card” means (i) a card issued under the Indian Act (Canada) indicating that the holder is an Indian, or (ii) an identification card issued by the Minister to a band for the purposes of the Fuel Tax Act or the Tobacco Tax Act ; (d) “Indian” means an Indian as defined in the Indian Act (Canada); (e) repealed AR 63/2023 s2; (f) “security” means surety bonds, bank guarantees or other financial arrangements. AR 398/87 s1;180/2005;63/2023 Interpretation 1.1 (1) The requirement set out in section 1(1)(a)(i.2)(C) of the Act does not apply for the purpose of determining whether lodging that is provided by a person who does not list the lodging on an online marketplace is excluded from the definition of accommodation in the circumstances determined by the Minister. (2) Repealed AR 7/2024 s2. AR 257/2020 s2;63/2023;7/2024 Collection periods 2 (1) A collection period for an operator in respect of an establishment in respect of which the operator is required to collect a tourism levy is, (a) if the operator rents or offers for rent 50 or more sleeping rooms, a calendar month, or (b) if the operator rents or offers for rent fewer than 50 sleeping rooms, a calendar quarter. (2) In making the calculation of sleeping rooms for the purposes of subsection (1), an operator may either (a) consider together as a unit all establishments in which the operator provides accommodation, or (b) consider separately each establishment in which the operator provides accommodation. (3) A collection period for an online broker is a calendar quarter. (4) The Minister may designate a collection period other than those set out in this section in respect of an establishment. AR 398/87 s2;8/2005;180/2005;257/2020;63/2023;6/2024;7/2024 Registration 2.1 (1) An application for registration under section 2.1(1) of the Act must be made in the form and manner specified by the Minister. (2) A person registered under this section is subject to the terms and conditions imposed from time to time by the Minister. AR 180/2005 s5;257/2020;63/2023 Exemption from payment of tourism levy 2.2 Notwithstanding section 2 of the Act, the following purchasers are exempt from the payment of a tourism levy: (a) the Government of Canada, if the operator obtains from the person using the accommodation certification that the accommodation purchased is for the use of the Government of Canada; (b) a person specified in the Diplomatic, Consular and other Representatives in Canada listing, as published by the Government of Canada, or a person with the armed forces of other countries stationed in Canada, where the accommodation is for the use of the person; (c) a country or state other than Canada, a political subdivision of that country or state, an agency of that country, state or political subdivision or an accredited person representing that country, state or political subdivision if the operator obtains from the person using the accommodation certification that the accommodation purchased is for the use of the country, state, political subdivision, agency or accredited person, as the case may be; (d) an Indian or band if (i) the Indian or band presents to the operator at the time of purchase a valid identification card in the Indian’s name or the Indian band’s name, as the case may be, (ii) the accommodation is provided on a reserve as defined in the Indian Act (Canada), and (iii) the accommodation is for the use of the Indian or band. AR 180/2005 s5;63/2023 2.3 Repealed AR 63/2023 s7. Prescribed fees 2.4 For the purposes of section 1(1)(i) of the Act, the following fees and types of fees are prescribed: (a) fees for smoking or vaping in non-smoking rooms; (b) fees for cleaning or maintenance; (c) fees to accommodate pets; (d) fees for the addition of physical amenities, including refrigerators, microwave ovens, and additional beds, to the accommodation; (e) booking, service, administration or similar fees, including fees charged by an online broker; (f) any other fees or types of fees specified by the Minister. AR 257/2020 s5;6/2024;7/2024 Collection and remittance by online broker 2.5 Notwithstanding section 3.2(1) of the Act, an online broker is not required to collect or remit the tourism levy applicable to a particular purchase of accommodation unless the online broker collects or facilitates, either directly or indirectly, the payment for the accommodation. AR 7/2024 s5 Remittance of tourism levy 3 (1) Every operator and online broker shall (a) file a return, by way of electronic filing, in the form and manner specified by the Minister, with respect to each collection period, and (b) remit the tourism levy collected or deemed to have been collected during a collection period so that the return and the tourism levy are received by the Minister not later than 28 days after the end of the collection period. (2) A return is required to be filed whether or not any accommodation was offered for sale or was purchased during the collection period, unless the Minister specifies that a return is not required for any collection period when no accommodation is sold or offered for sale. (3) The Minister may specify (a) the circumstances in which an operator may file a return other than by way of electronic filing, and (b) the form and manner in which a return referred to in clause (a) may be filed. AR 398/87 s3;180/2005;257/2020;63/2023;6/2024;7/2024 4 Repealed AR 180/2005 s7. Refund of tourism levy 4.1 (1) In this section, “bad debt” means a debt owing to an operator or online broker that is established by the operator or online broker to have become uncollectible and that has been included in computing the operator’s or online broker’s income for the current or a preceding taxation year for the purposes of the Income Tax Act (Canada). (2) For the purposes of subsection (1), a debt is not uncollectible unless the operator or online broker (a) has exhausted all efforts to collect the debt that would reasonably be expected to be made by a creditor who is dealing at arm’s length with a debtor, and (b) in the case of a bankruptcy or receivership of a debtor, has filed a claim with the trustee or receiver that includes the amount of the tourism levy owing shown separately. (3) The Minister may, on receipt of an application made in the form and manner specified by the Minister, pay a refund of a tourism levy that was remitted in respect of accommodation purchased on credit, where all or a portion of the amount of the debt in respect of the purchase is a bad debt. (4) An application for a refund must be accompanied by invoices, ledgers and any other records, documents and evidence required (a) to prove the claim, and (b) to determine the amount of the tourism levy that was remitted to the Minister and the amount of tourism levy to be refunded. (5) An application for a refund must be received by the Minister within one year after the earlier of (a) the date that a notice of the bankruptcy or notice of the appointment of a receiver is received by the applicant, and (b) the date that the debt has been written off as a bad debt in the applicant’s books of account. (6) If, in the opinion of the Minister, an applicant has misrepresented a material fact, the applicant’s application for a refund under this section shall be disallowed and no refund shall be made. (7) An online broker is not required to refund an overpayment under section 3.1(1) of the Act except where specified by the Minister. AR 180/2005 s8;257/2020;63/2023;6/2024;7/2024 Interest 5 Interest that is payable by virtue of section 13 of the Act is simple interest, payable to the Minister from the date the amount owing was due until the date on which the amount is received at the rate prescribed for the purposes of section 39 of the Alberta Corporate Tax Act . AR 398/87 s5;251/2001;8/2005;180/2005 Security 6 (1) For the purpose of ensuring that an operator or online broker will carry out the operator’s or online broker’s powers, duties, rights and obligations under the Act and this Regulation, the Minister may require an operator or online broker to (a) be covered by security and provide the Minister with evidence of that security, or (b) provide security to the Minister. (2) Security shall be in a form and amount acceptable to the Minister, but shall not exceed an amount equal to 3 times the maximum amount of tourism levy, as estimated by the Minister, that will be required to be remitted by the operator or online broker in a single collection period during the term of the security. AR 398/87 s6;180/2005;63/2023;6/2024;7/2024 Records 7 (1) An operator shall maintain records in a form acceptable to the Minister showing all the information necessary to enable the Minister to determine the amount of tourism levy required to be collected and remitted by the operator. (2) An operator shall keep the records referred to in subsection (1) (a) at his place of business or residence in Alberta or at any other place with the written approval of the Minister, and (b) for the period of time specified by the Minister, and if no such period is specified, for 4 years after the end of the calendar year in which the records are created. (3) An online broker shall keep and maintain records as required by the Minister. AR 398/87 s7;180/2005;257/2020;63/2023;6/2024;7/2024 Online broker information 7.1 For the purposes of section 22(1.2) of the Act, the Minister, no more than one time per calendar year with respect to an online broker, may demand that the online broker or, when an online broker is a partnership or corporation, demand that a partner or the president or another officer or manager, secretary or any director, agent or representative of the partnership or corporation provide any or all of the following information in respect of a specified period: (a) the name or business name, address, contact information and, if applicable, the business number as defined in the Income Tax Act (Canada) of each operator listing accommodation on an online marketplace operated by the online broker; (b) the total amount collected by the online broker in respect of each operator listing accommodation on an online marketplace operated by the online broker; (c) the total amount collected by the online broker in respect of all purchases of accommodation made through any online marketplace operated by the online broker; (d) in respect of each operator listing accommodation on an online marketplace operated by the online broker, (i) the total amount collected by the online broker as consideration for the accommodation, excluding amounts referred to in subclause (ii), (ii) the total amount collected by the online broker as booking, service, administration or similar fees charged by the online broker, and (iii) the total amount collected by the online broker as tourism levy; (e) in respect of all purchases of accommodation made through any online marketplace operated by the online broker, (i) the total amount collected by the online broker as consideration for the accommodation, excluding amounts referred to in subclause (ii), (ii) the total amount collected by the online broker as booking, service, administration or similar fees charged by the online broker, and (iii) the total amount collected by the online broker as tourism levy; (f) the total amount of tourism levy remitted by the online broker in respect of each operator listing accommodation on an online marketplace operated by the online broker; (g) a list of all operators in respect of which an election under section 3.2(3) of the Act has been made; (h) any other information required to determine the amount of tourism levy to be collected and remitted by the online broker. AR 7/2024 s10 Invoice 8 (1) An operator shall, with respect to each rental of accommodation on which a tourism levy is payable under the Act, prepare an invoice that shows separately the purchase price and the amount of tourism levy payable. (2) The operator shall retain 1 copy of an invoice he prepares under subsection (1) and give 1 copy to the purchaser of the accommodation. AR 398/87 s8;180/2005 Service 8.1 (1) The ways in which a notice or other document may be served on, sent to or given to a person by the Minister or an officer under the Act include (a) delivering or mailing the notice or other document to the person’s place of business or last address known to the Minister, or (b) leaving the notice or other document with an adult employee at the person’s place of business. (2) If the person on or to whom a notice or other document is to be served, sent or given under the Act carries on business under a name or style other than the person’s own name, the notice or other document may be addressed to the name or style under which the person carries on business. AR 257/2020 s9;63/2023 Coming into force 9 This Regulation is deemed to have come into force on June 1, 1987. AR 398/87 s9