About Condo-Hotel Tax

WHAT IS CONDO-HOTEL TAX?

Condo-Hotel Tax is a tax on units that are a part of a condo-hotel or other properties that are rented in a hotel rental pool.

Condo-Hotel Tax is payable under the Hotels Act and is a requirement for the renewal of the hotel licence.

EFFECTIVE DATE: JANUARY 1, 2023

RATE OF CONDO-HOTEL TAX:

The rate of the Condo-Hotel Tax is 75% of the residential property rate, under the Real Property Tax Act.

WHO PAYS CONDO-HOTEL TAX?

The owner of any unit within a Condo-Hotel or hotel rental pool that does not report net VAT in excess of the Condo-Hotel Tax. The hotel administrator also has joint responsibility for payment.

WHAT YOU SHOULD KNOW:

1. What is the Real Property Tax value on the unit?
2. What would the Real Property Tax on the unit at the residential rate be if the unit was taxable under the Real Property Tax Act?
3. The net VAT paid for the rental of the unit that you own.

WHEN ARE YOU EXEMPT FROM PAYING CONDO-HOTEL TAX?

In order to be exempt from the Condo-Hotel Tax, the net VAT paid on a particular unit must exceed the Condo-Hotel Tax applicable for that unit.