Until recently, Alberta Finance, Tax and Revenue Administration (TRA), administered the Hotel Room Tax Act. The Act provided for the collection of tax at the rate of five per cent of the purchase price on accommodation in Alberta, up to, and including, March 31, 2005. Hotels in Alberta were required to collect the tax from the purchaser of the accommodation. The hotels then remitted the tax collected to TRA.

On March 14, 2005, Bill 21 - Hotel Room Tax (Tourism Levy) Amendment Act, 2005, was introduced, changing the name to tourism levy and reducing the rate from five per cent to four per cent. TRA now administers the Tourism Levy Act that replaced the former Hotel Room Tax Act.

Background

The Alberta hotel room tax was introduced in 1987. The direct five per cent tax was added to the purchase price paid by the consumer on temporary accommodation in Alberta for both business and personal use.

The new tourism levy, like its predecessor, will be collected and remitted to TRA by the providers of temporary accommodation. The tax does not apply to rooms occupied continuously for 28 days or more by the same person, or in establishments with fewer than four bedrooms for rent.

For more information, see the Special Notice, Bill 21 - Hotel Room Tax (Tourism Levy) Amendment Act.