What is the Alberta Tourism Levy and How Does it Affect You?

Are you planning a trip to Alberta and wondering about the Alberta Tourism Levy? SIXT.VN has you covered with all the essential information! This levy supports the province’s vibrant tourism industry, ensuring memorable experiences for visitors like you. Discover how it works and what it funds, making your Alberta adventure even more impactful. With SIXT.VN, easily navigate your travel plans, explore Alberta’s attractions, and enjoy seamless airport transfers and hotel bookings.

1. Understanding the Alberta Tourism Levy

What exactly is the Alberta Tourism Levy?

The Alberta Tourism Levy is a 4% fee applied to the purchase price of temporary accommodation in Alberta. This levy is designed to support and enhance the province’s tourism industry, ensuring that visitors have the best possible experience. The funds collected are reinvested into various tourism initiatives, such as marketing campaigns, infrastructure improvements, and tourism-related programs.

The tourism levy ensures that Alberta remains a top travel destination by funding projects that improve visitor experiences. According to the Government of Alberta, the levy helps sustain a thriving tourism sector that benefits both travelers and local businesses. The levy applies to various types of accommodation, making it a consistent fee across the industry.

What does the purchase price of accommodation include?

The purchase price of accommodation, which the 4% tourism levy is based on, includes several fees and charges:

• Smoking or vaping fees: Fees for smoking or vaping in non-smoking rooms.
• Normal cleaning or maintenance: Standard cleaning and upkeep of the accommodation.
• Pet accommodation: Charges for accommodating pets.
• Additional physical amenities: Fees for extra amenities such as refrigerators, microwaves, and additional beds.
• Booking, service, and administration fees: Charges paid by the purchaser for booking, service, administration, or similar fees, including those charged by online brokers.

This comprehensive inclusion ensures that the levy is applied consistently across all aspects of your stay. Including these fees in the base price provides a clear and transparent calculation of the total cost. According to a report by the Alberta Hotel & Lodging Association, transparency in pricing enhances customer satisfaction and trust.

Who is responsible for collecting and remitting the Alberta Tourism Levy?

Any person or entity that sells, offers for sale, or provides short-term accommodation in Alberta is required to collect, report, and remit the tourism levy to Tax and Revenue Administration (TRA). This includes:

• Operators: Traditional commercial facilities such as hotels, motels, and inns.
• Accommodation hosts: Individuals or entities providing residential units for short-term stays.
• Online brokers: Platforms that facilitate short-term accommodation transactions between operators/hosts and purchasers.

As of October 1, 2024, online brokers that collect or facilitate full or partial payment from the purchaser are also required to collect, report, and remit the tourism levy. Ensuring all parties involved in the accommodation process adhere to these regulations helps maintain compliance and proper revenue collection. The TRA provides resources and support to help these entities understand and fulfill their obligations.

2. Registration and Reporting Requirements for the Alberta Tourism Levy

Who needs to register for the Alberta Tourism Levy?

The requirements for registering and remitting the tourism levy have evolved over time:

• Before April 1, 2021: Only operators of traditional commercial facilities needed to register.
• April 1, 2021, to September 30, 2024: Both operators of traditional commercial facilities and accommodation hosts of residential units needed to register for stays booked after March 31, 2021. This period required these entities to register directly since no online brokers were registered to collect and remit on their behalf.
• As of October 1, 2024: Both operators and accommodation hosts must register if they collect full or partial payment from the purchaser for stays booked after September 30, 2024. Additionally, online brokers facilitating short-term accommodation transactions must register if they collect or facilitate payment.

These changes reflect the increasing role of online platforms in the accommodation industry. Staying compliant with these regulations ensures businesses avoid penalties and contribute accurately to Alberta’s tourism initiatives. The Government of Alberta provides detailed guidelines to help stakeholders navigate these requirements.

Navigating Alberta’s tourism levy registration process can be streamlined through the user-friendly TRACS system, ensuring compliance and supporting the province’s tourism initiatives.

What are the exemptions from the Alberta Tourism Levy?

Certain persons or entities are exempt from the tourism levy, provided they can present evidence of their exemption at the time of accommodation purchase:

• The Government of Canada.
• Diplomatic personnel: Persons listed in the Diplomatic, Consular and Other Representatives in Canada, published by the Government of Canada.
• Armed forces personnel: Members of the armed forces of another country stationed in Canada.
• Foreign governments: Countries or states other than Canada, including their political subdivisions, agencies, or accredited representatives, provided the operator obtains certification that the accommodation is for the use of these entities.
• Indigenous peoples: An Indian or band (as defined in the federal Indian Act) if the accommodation is provided on a reserve in Alberta and is for the use of the individual or band.

These exemptions recognize specific circumstances where the levy is not applicable, reducing the financial burden on certain groups. Ensuring eligibility for these exemptions requires proper documentation and adherence to the guidelines. The exemption policies align with international agreements and specific legal provisions.

What are the exceptions where the tourism levy does not apply?

There are specific situations where the tourism levy does not apply:

• Long-term stays: Lodging continuously occupied by the same person for 28 days or more.
• Low-cost, low-revenue accommodations: Lodging not listed on an online marketplace (except the owner’s own website) where the purchase price is less than $30 per day or $210 per week, and the gross revenue in the previous 12 months was less than $5,000 and is reasonably estimated to be less than $5,000 in the next 12 months.
• Non-lodging spaces: Rooms that do not contain a bed and are used for displaying merchandise, holding meetings, or entertaining.
• Care facilities: Lodging provided in a social care facility, nursing home, or hospital.
• Supportive living accommodations: Licensed supportive living accommodations.
• Charitable lodging: Lodging provided by a registered charity, other than in an establishment owned or operated by the charity that is normally used for lodging in connection with a course of instruction.
• Employer-provided lodging: Lodging provided to an employee by an employer not in the business of selling lodging, in a work camp owned by the employer or managed by, or on behalf of, the employer.
• Contractor lodging: Lodging provided to an independent contractor by a person not in the business of selling lodging who engages the services of the contractor, in a work camp owned by the person or managed by, or on behalf of, the person.

These exceptions aim to avoid imposing the levy on situations that are not primarily tourism-related. Understanding these exceptions helps businesses and individuals correctly apply the tourism levy regulations. The Government of Alberta offers detailed explanations to clarify these specific scenarios.

3. Step-by-Step Guide to Registering for the Alberta Tourism Levy

How do I register for the Tourism Levy program?

If you provide temporary accommodation in Alberta, you may be required to register for the Tourism Levy program. Here is a detailed, step-by-step guide:

Step 1: Create or sign in to your Alberta.ca Account

• Go to the Alberta.ca Account page.
• Create a basic account if you don’t already have one.

Step 2: Sign in and select Tourism Levy

• After creating your Alberta.ca Account, log in to TRACS.
• Use your Alberta.ca Account username and password to sign in.
• Once logged in, you will be redirected to TRACS.
• Select “Program Registration.”
• Choose “Tourism Levy” from the “Program Name” menu.

Step 3: Complete and submit the registration form

• Fill out the registration form with all required information.
• Submit the form.
• If approved, you will be immediately redirected to your tourism levy TRACS account.
• If further review is required, you will receive a pending status notification and a reference number. TRA may contact you for additional information.
• You will receive an approval email once your registration has been processed.

Following these steps ensures a smooth registration process and compliance with Alberta’s tourism levy requirements. The online TRACS system simplifies the application process, making it accessible and efficient for all users. Keeping accurate records and information during registration is essential for avoiding delays or complications.

4. Filing and Remitting the Alberta Tourism Levy

When are tourism levy returns due?

Operators, accommodation hosts, and online brokers must file tourism levy returns and remit payment within 28 days of the end of the collection period. A collection period is the calendar quarter or month in which the tourism levy is to be collected. Filing your return late may result in penalties, and interest will be charged on late payments.

Adhering to these deadlines is crucial for maintaining compliance and avoiding financial repercussions. Setting reminders and using the TRACS system can help streamline the filing process. The Government of Alberta provides clear timelines and resources to assist with timely submissions.

How do collection periods work?

• Operators: An operator’s collection period is based on the total number of sleeping rooms available per facility. For operators that are not accommodation hosts, the total number of sleeping rooms is calculated for each facility. For accommodation hosts, the total number of sleeping rooms is for all properties combined.
  • Monthly filers: 50 or more sleeping rooms.
  • Quarterly filers: Less than 50 sleeping rooms.
• Accommodation hosts: An accommodation host’s collection period is based on the combined number of sleeping rooms for all residential units.
  • Monthly filers: 50 or more sleeping rooms.
  • Quarterly filers: Less than 50 sleeping rooms.
• Online brokers: All returns are filed quarterly.

Understanding these collection periods ensures that returns are filed at the correct frequency. Accurate tracking of the number of sleeping rooms and revenue is essential for determining the appropriate filing period. The TRA provides detailed guidelines and examples to help businesses classify their filing frequency correctly.

Alberta offers a diverse range of accommodations, from cozy cabins to luxury hotels, ensuring every traveler finds the perfect place to stay and contributing to the province’s tourism levy.

What are the required filing dates for operators?

Operators must file monthly or quarterly returns for each facility, including nil returns if applicable. The filing frequency is determined by the number of sleeping rooms available. Returns and remittances are due on the 28th day after the end of the collection period.

Staying organized and aware of these deadlines helps operators avoid late filing penalties. Utilizing accounting software and setting up reminders can further assist in meeting these obligations. The Government of Alberta offers resources to help operators understand and adhere to these requirements.

What are the required filing dates for accommodation hosts?

Accommodation hosts must file one monthly or quarterly return for all residential units. The filing frequency is determined by the number of sleeping rooms available. Returns are only required for periods in which tourism levy was collected. Returns and remittances are due on the 28th day after the end of the collection period.

For accommodation hosts, keeping accurate records of collected levies and understanding the filing frequency are crucial. Properly documenting the number of sleeping rooms and revenue ensures compliance with the tourism levy regulations. The TRA provides support and guidance to help accommodation hosts fulfill their filing obligations.

What are the required filing dates for online brokers?

Online brokers must file returns and remit payments on the 28th day after the end of the calendar quarter in which the tourism levy was collected or deemed collected.

Adhering to these quarterly deadlines is essential for online brokers to maintain compliance and avoid penalties. Establishing systematic processes for collecting and remitting the levy helps ensure accurate and timely filings. The Government of Alberta offers resources to help online brokers understand and meet these requirements.

5. How to File and Pay the Alberta Tourism Levy

How do I complete the Tourism Levy Return?

To complete the Tourism Levy Return, you will need to access your TRACS account and follow the prompts to enter the required information. Ensure you have accurate records of all accommodation sales and collected levies for the reporting period.

Accurate and complete returns are essential for compliance with the Alberta Tourism Levy regulations. Reviewing all data before submission can help prevent errors and potential penalties. The TRACS system provides a user-friendly interface for completing and submitting returns.

How do I submit my return?

Once you have completed the Tourism Levy Return, you can submit it electronically through your TRACS account. Follow the on-screen instructions to finalize and submit your return.

Electronic submission through TRACS is a convenient and efficient way to file your returns. Confirming receipt of your submitted return provides peace of mind and ensures proper documentation. The Government of Alberta encourages electronic filing to streamline the process.

How do I remit the tourism levy collected and view the Notice of Assessment?

To remit the tourism levy collected, you can make a payment online through your TRACS account. Visit the Making Payments to Tax and Revenue Administration page for more information. Interest will be charged on late remittances and will continue to accrue until the balance is paid in full. If there were changes made to your return or a balance is owing, a notice of assessment will be available in your TRACS account.

Timely remittance of the tourism levy is crucial for avoiding interest charges and maintaining compliance. The TRACS system provides a secure platform for making payments and accessing notices of assessment. Staying informed about your account status helps ensure financial obligations are met promptly.

6. Managing Your TRACS Account

What can I do in the TRA Client Self-Service (TRACS) system?

TRA Client Self-Service (TRACS) is a secure online system that allows authorized clients to conduct business with TRA conveniently. You can perform the following tasks in TRACS:

• File a tourism levy return
• Confirm receipt of submitted returns
• View the status of prior assessments, financial details, and notices of assessment and reassessment
• Access financial information and view account period balances
• Update address and contact information
• Delegate account access to other employees or authorized individuals
• Submit documents
• File a notice of objection
• Register new facilities
• Request a waiver of penalties and interest

TRACS provides a comprehensive platform for managing all aspects of your Alberta Tourism Levy account. Utilizing this system effectively can save time and ensure accurate record-keeping. The Government of Alberta offers instructional videos and support to help users navigate TRACS.

Managing your Alberta Tourism Levy account through the TRA Client Self-Service (TRACS) system provides convenient access to filing returns, viewing assessments, and updating account information.

How do I maintain my TRACS account?

To maintain your TRACS account, regularly log in to review your account status, update any changes to your contact information, and ensure all filings and payments are up to date.

Keeping your TRACS account current ensures that you receive important notifications and avoid potential issues. Regularly monitoring your account helps maintain compliance and facilitates smooth transactions. The Government of Alberta provides resources to help users manage their TRACS accounts effectively.

7. Authorizing a Representative for Your Alberta Tourism Levy Account

How do I authorize a representative to access my Alberta Tourism Levy account?

An individual with proper authorization for the business may consent to the release of confidential information about their account(s) with TRA to a specific firm and/or individual. This includes:

• Owner
• Partner of a partnership
• Corporate director
• Trustee of an estate
• Individual with delegated authority

Authorizing a representative can streamline account management and ensure that someone else can handle filings and payments on your behalf. The representative must have the necessary authorization to act on behalf of the business. The Government of Alberta provides a clear process for authorizing representatives to access TRACS accounts.

What are the steps to authorize a representative?

Step 1: Fill out the Alberta Consent Form

• Complete the Alberta Consent Form with all required information.

Step 2: Submit the consent form

• Submit the completed consent form to TRA.

Step 3: Representative receives PIN (only for TRACS access)

• TRA will review the consent form to ensure it is complete.
• TRA will issue a PIN to the individual via secure e-mail. TRACS access can only be provided to an individual.

The representative must enter the PIN and account number to access the TRACS account. Following these steps ensures that the representative is properly authorized and can access the necessary account information. The Alberta Consent Form helps maintain security and confidentiality while allowing for delegated account management.

8. Filing a Waiver Request for Penalties and Interest

When can I file a waiver request?

TRA recognizes that there may be circumstances beyond a person’s control that prevent compliance with filing and payment obligations under the Tourism Levy Act. In such circumstances, TRA may exercise its discretion to waive or cancel all or any portion of penalties or interest that have been assessed.

Filing a waiver request is appropriate when unforeseen circumstances prevent timely filing or payment. Providing detailed documentation and a clear explanation of the situation can support your waiver request. The Government of Alberta reviews waiver requests on a case-by-case basis to determine eligibility.

How do I file a waiver request?

Step 1: Log in to your TRACS account

• Select “Waiver request – Penalties & Interest” from “Account Actions.”
• If you do not have access to your account in TRACS, complete the TRACS Enrollment Request.

Step 2: Complete and submit the waiver request

• Complete all required fields.

Step 3: Receive a decision

• TRA will review your waiver request and may contact you for additional information.
• You will receive the written decision by secure email.

Following these steps ensures that your waiver request is properly submitted and reviewed by TRA. Providing accurate and complete information can improve the chances of a favorable decision. The TRACS system simplifies the waiver request process, making it accessible and efficient.

9. Navigating Alberta with SIXT.VN

How can SIXT.VN help me explore Alberta?

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Explore the breathtaking landscapes of Banff National Park, a highlight of Alberta, with convenient airport transfers, hotel bookings, and travel advice from SIXT.VN.

What are some must-visit destinations in Alberta?

Alberta is home to numerous stunning destinations:

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How can SIXT.VN make my trip to Alberta more convenient?

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10. Frequently Asked Questions (FAQ) About the Alberta Tourism Levy

Q1: What is the Alberta Tourism Levy used for?

The Alberta Tourism Levy is used to support and enhance the province’s tourism industry through marketing campaigns, infrastructure improvements, and tourism-related programs.

Q2: Who has to pay the Alberta Tourism Levy?

Anyone purchasing temporary accommodation in Alberta is required to pay the Alberta Tourism Levy.

Q3: Are there any exemptions to the Alberta Tourism Levy?

Yes, certain entities such as the Government of Canada, diplomatic personnel, and Indigenous peoples are exempt under specific conditions.

Q4: How much is the Alberta Tourism Levy?

The Alberta Tourism Levy is 4% of the purchase price of the accommodation.

Q5: When do I need to file my Tourism Levy return?

Tourism Levy returns must be filed and payments remitted within 28 days of the end of the collection period.

Q6: What is TRACS?

TRACS (Tax and Revenue Administration Client Self-Service) is a secure online system for managing your Alberta Tourism Levy account.

Q7: How can I register for the Tourism Levy program?

You can register through the Alberta.ca Account and the TRACS system.

Q8: What happens if I file my return late?

Late filing may result in penalties, and interest will be charged on late payments.

Q9: Can I authorize someone else to manage my Tourism Levy account?

Yes, you can authorize a representative by completing the Alberta Consent Form and submitting it to TRA.

Q10: What should I do if I cannot comply with the filing or payment obligations due to unforeseen circumstances?

You can file a waiver request through your TRACS account, providing detailed documentation and an explanation of the situation.

By understanding these FAQs, you can better navigate the Alberta Tourism Levy and ensure compliance with all regulations. SIXT.VN is here to support your travel plans and provide you with the information you need for a seamless experience.