By-Law M-400
Regional Council requested amendments to the Halifax Regional Municipality Marketing Levy Act to expand the type of accommodation that could be subject to the marketing levy to include short-term rentals, and to increase the maximum amount of levy that could be charged.
The recommendation provided to Council is to adopt By-Law M-400 in response to the legislative amendments that were made by the Province of Nova Scotia in fall 2022.
By-Law M-400 repeals By-Law H-400, increases the hotel marketing levy from two percent to three percent and requires all accommodations registered under the Tourism Accommodations Registration Act to collect and remit a marketing levy of three percent to the Halifax Regional Municipality beginning on October 1, 2023.
- Who needs to pay the marketing levy?
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The marketing levy is paid by the visitor to the operator at the time of purchase of the room/unit. All tourism accommodation operators (which now includes short term rental operators) operating within the municipality are required to submit a marketing levy of three per cent of revenues per night to the municipality.
- What is the marketing levy?
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In 2001, the municipality adopted a by-law to allow for a marketing levy to be collected at certain tourism accommodations in the Halifax region. The marketing levy is designed to support the sustainable development of the tourism industry, including funding of events through the municipality’s Special Events Reserve Grant Program, and to partially fund operations for the regional Destination Management Organization, Discover Halifax.
The marketing levy is enabled by provincial legislation and imposed through the municipal By-law M400, Respecting Marketing Levy. All tourism accommodations operating within the municipality are required to collect a marketing levy of three per cent of revenues per night from the visitor, which is payable to the operator at the time of purchase of the room/ unit. - What is a tourist accommodation?
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A tourist accommodation includes a roofed accommodation and provides short term accommodations for 28 days in a row or less, including hotels.
- What are the changes to the marketing levy?
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Beginning October 1, 2023, all registered tourism accommodations will be required to remit a marketing levy.
For accommodations currently collecting the marketing levy, the levy will be increased from two per cent to three per cent.All other tourism accommodations will now be required to begin collecting a three per cent marketing levy from consumers.
- Who needs to register as a Tourism Accommodation with the Province of Nova Scotia? How?
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Please visit the provincial website for information on tourism accommodation registration.
- Once a tourist accommodation property owners register as a Tourism Accommodation with the Province of Nova Scotia, do they need to notify the municipality that they’ve registered?
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No, the municipality will receive a list of tourism registrations from the Province of Nova Scotia via an information-sharing agreement.
- How will compliance as a tourism accommodations operator be enforced?
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The Province of Nova Scotia is responsible for compliance for non-registration as a tourism accommodations operator.
- For tourist accommodations sold on marketing platforms, will the platform do the remittance?
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No. The tourist accommodation property owner will be required to do the monthly remittance.
- How do tourist accommodations property owners collect the marketing levy?
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All tourist accommodation property owners are responsible for calculating and collecting the marketing levy from the purchaser at the time a room is purchased and paid in full.
- How is the marketing levy calculated?
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The marketing levy is calculated as three per cent of total revenue for the sale of a room or unit, plus any other fees for services provided such as cleaning and administrative fees, before goods and services tax.
- How does a tourist accommodation property owner report their monthly marketing levy and remit the payment to the municipality?
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The monthly marketing levy must be remitted to the municipality via the online Monthly Marketing Levy Remittance Report by the 15th of each month following the collection of a marketing levy.
The online Monthly Marketing Levy Remittance Report must be submitted even if none of the rooms have been sold and there is no marketing levy amount to remit.
Payment can be remitted to the municipality via a cheque or electronic payment. Further instructions for payment are on the Municipal Payments web page .
In addition to completing the online Monthly Marketing Levy Remittance Report, operators can also call 311 or visit an in-person customer service centre for assistance.
- Does a tourist accommodation property owner still need to submit a remittance if they haven't sold any rooms?
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Yes, a Monthly Marketing Levy Remittance Report is required to be submitted if no rooms have been sold during a month.
- Does a tourist accommodation property owner need to submit a remittance if they decide not to operate their short term rental unit?
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A Monthly Marketing Levy Remittance Report will be required each month for the full year of the registration, unless the registration is cancelled with the Province of Nova Scotia. The registration year runs from April 1 to March 31.
- What happens if a tourist accommodation owner doesn’t remit the monthly remittance form?
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The municipality will enforce monthly remittance; there will be a penalty of $25 per day imposed on non-remittance, with interest charged on the amount of the marketing levy that was not remitted.
- On the remittance form there is an account number, how does a tourist accommodation owner get their account number?
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Once a rental property owner registers as a tourism accommodation with the Province of Nova Scotia, the municipality will be notified, and the rental property owner will receive correspondence from the municipality with their account number. If a tourist accommodation owner does not receive correspondence with this number, please contact 311.
- Will a tourist accommodation owner be charged interest on late payments?
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Yes, interest will be charged on late payments as per Administrative Order 14, Respecting Application of Interest Charges on Outstanding Accounts .
- I have a tourist accommodation and a customer booked it September 1, 2023, for a visit October 3, 2023. The customer will pay in full the first day of their visit (October 3). Does the customer need to pay the three per cent marketing levy on this booking?
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Yes, the customer pays the three per cent marketing levy because the payment was made after October 1, 2023.
- I have a tourist accommodation and a customer booked it September 1, 2023, for a visit October 3, 2023. The customer paid half of the amount due (i.e. $100) upon booking September 1 and will pay the remaining 50 per cent (i.e. another $100) on the first day of their visit (October 3). Does the customer need to pay the three per cent marketing levy on this booking?
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Yes, the marketing levy is payable on the full amount of the booking (i.e., $200 in this example).
- I have a tourist accommodation and a customer booked it September 1, 2023, for a visit October 3, 2023. The customer paid in full in advance when they booked (September 1). Does the customer need to pay the three per cent marketing levy on this booking?
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No, the customer does not need to pay the three per cent marketing levy on this booking because it was paid in full before the marketing levy by-law came into effect for short term rentals (October 1, 2023).
- I have a tourist accommodation and a customer booked it September 1, 2023, for a visit October 3, 2023. The customer provided a credit card to hold the room but was not charged. The customer will be charged when 24 hours before their visit (they will visit October 3 and will be charged October 2). Does the customer need to pay the three per cent marketing levy on this booking?
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Yes, the three per cent marketing levy is payable on the full amount of the booking because the payment was made after October 1, 2023.