The Tourism Levy Act in Alberta has recently undergone amendments through Regulation 7/2024, filed on February 1, 2024. These changes aim to refine the responsibilities and operational procedures regarding the collection and remittance of tourism levies, particularly for online brokers. One of the initial modifications includes the repeal of Section 1.1(2), which previously contained definitions or stipulations related to the tourism levy. Additionally, Section 2 has been modified to specify that the collection period for online brokers is now defined as a calendar quarter. This change standardizes the reporting period for these brokers, simplifying their financial operations and aligning their practices with those of traditional operators.

The regulation also clarifies that online brokers are not required to collect or remit tourism levies unless they directly facilitate payments for accommodations, which delineates the responsibilities of online brokers in comparison to other tourism sector operators. The term “online broker” has been incorporated into various sections, including Section 3(1) and Section 4.1, which discusses the refund of the tourism levy, ensuring explicit recognition of online brokers within the regulatory framework. Furthermore, Section 4.1(1) introduces a new definition of “bad debt,” referring to debts deemed uncollectible and included in income calculations for the current or previous taxation year, thus providing clarity on handling uncollected debts in the context of tourism levies.

The amendments also specify that online brokers are not obligated to refund overpayments unless directed by the Minister, granting operators greater autonomy over their financial obligations. New security requirements outlined in Section 6 state that online brokers may need to provide evidence of security to the Minister, with the amount not exceeding three times the maximum tourism levy estimated for a single collection period. This provision aims to ensure financial accountability while protecting public funds. Moreover, Section 7(3) establishes record-keeping responsibilities, mandating online brokers to maintain records as required by the Minister to enhance transparency and compliance with tourism levy regulations.

Another critical provision, Section 7.1, allows the Minister to demand specific information from online brokers once per calendar year, which includes details about accommodations listed, amounts collected, and tourism levies remitted. This measure is essential for monitoring compliance and ensuring the accurate collection of tourism levies.

By clearly delineating the responsibilities between traditional operators and online brokers, the regulation seeks to streamline the tourism levy process, reduce administrative burdens, and improve overall compliance. These changes acknowledge the growing influence of digital platforms in the tourism industry, recognizing the need for regulatory frameworks to adapt to their unique operational models as these platforms become increasingly prevalent in booking accommodations.

Alberta (7/2024) February 15, 2024