The bill establishes :
- • a five percent tax on the price of accommodations at hotels, motels, lodges and other such establishments;
- • a procedure to register operators of accommodation and authorize the operators to collect the tax; and
- • sets out enforcement provisions to ensure the tax is paid, collected and remitted in accordance with the act and the regulations.
The tax does not apply to lodging in a place with less than five sleeping units and other accommodation exempted by the regulations.
Every operator of an accommodations business will have to:
- • register to obtain a registration certificate (like a business licence) from the government and keep it current;
- • assign values to the value of accommodation that they sell to customers;
- • collect the tax from customers;
- • remit the tax to the government together with a return;
- • obtain government clearance to sell the land or accommodation building or its stock in trade. The clearance certificate will certify that all of the hotel tax owing has been paid; and
- • maintain proper books and records that will keep track of the amount owing, collected, remitted and paid or refunded.
The bill also contains detailed penalty, enforcement and appeal sections.