Background

Hotel room tax was introduced in Alberta in 1987. The Hotel Room Tax Act provided for the collection of tax at the rate of five per cent of the purchase price on accommodation in Alberta. Until March 31, 2005, hotels in Alberta were required to collect the tax from both business and personal purchasers of the accommodation, then remit the tax collected to TRA. Alberta Finance, Tax and Revenue Administration (TRA), administered the Hotel Room Tax Act.


Tourism Levy

In the spring of 2005, the Hotel Room Tax Act was replaced by the Tourism Levy Act which reduced the rate to four percent effective April 1, 2005. The levy is collected and remitted to TRA by the providers of temporary accommodation in Alberta.

The levy does not apply to rooms occupied continuously for 28 days or more by the same person, or in establishments with fewer than four bedrooms available for rent at the same time in the same location.

For more information about the Tourism Levy click on "Publications" in the banner on the right.

Please note: There is a late filing penalty associated with the levy. For more information, see the Special Notice, Tourism Levy Late Filing Penalties, Filing and Payment Options and Information Circular TL-2, Responsibilties of Operators Providing Accommodation.