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BY-LAW No. A-002
TOURIST ACCOMMODATION TAX
Pursuant to the authority conferred by section 129 of the Towns and Local Service Districts Act,
SNL 2023, c. T-6.2, as amended, the Town of Labrador City hereby enacts the following by-law
respecting the taxation of tourist accommodations.
1. TITLE
These by-laws may be cited as 'By-law No. A-002, Tourist Accommodation Tax'.
2. INTERPRETATION
For the purpose of these by-laws unless the context otherwise requires:
Act
means Towns and Local Service Districts Act, SNL 2023, c. T-
6.2, as amended.
Accommodation
means:
(i) a building, part of a building or group of buildings
containing one or more units and includes cabins, cottages
and other permanent structures,
(ii) land maintained as grounds for tents, trailers, recreational
vehicles or other temporary or seasonal structures,
(iii) a boat, or
(iv) any other real or personal property prescribed in the
regulations;
Guest
as any person, individual or corporation which is renting space
in or at any Accommodation.
Non-Profit Entity
means an organization, association, or corporation that is
(a) incorporated or registered under the Corporations Act of
Bylaw No. A-002
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Newfoundland and Labrador or under Part II of the Canada
Corporations Act or the Canada Not-for-profit Corporations
Act;
(b) operated solely for social, cultural, recreational, charitable,
or community purposes, and not for the financial gain of its
members or directors; and
(c) where any profits or surplus are used only to further the
organization's stated purposes and not distributed to its
members, directors, or officers.
Operator
means the owner or lessee of a tourist accommodation or
other person in charge of the tourist accommodation.
Property
means any parcel of real property, with or without buildings
or structures thereon.
Regulations
means Tourist Accommodations Regulations
under the Tourist Accommodations Act.
Short Term Rental
means the provision of an accommodation for compensation
to an individual or group of individuals for overnight lodging
for a period of 30 days or less.
Town
means the Town of Labrador City, a municipal corporation
incorporated under the Towns and Local Service Districts Act,
SNL 2023, c. T-15.01, and includes the Council and any
officer or employee acting under its authority.
Tourist
Accommodation
means an accommodation that is offered for short term rental to
the traveling or vacationing public.
3. APPLICATION
i. All Tourist Accommodations in the Town of Labrador City shall be assessed a Tourist
Accommodation Tax (hereinafter the "Tax"), which shall be payable by the Operator, to
the Town of Labrador City.
ii. The Tax shall be assessed at a rate of four percent (4%) of the daily rate for the tourist
accommodation.
iii. The Tax shall be paid by the Guest and collected by the Operator as an agent of the
Town.
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4. COLLECTION & REMITTANCE
i. Collection of Tax
(a) Every Operator shall collect the Tourist Accommodation Tax at the time of payment
by the Guest, whether such payment is made in cash, by credit or debit card, electronic
transfer, or through an online booking or third-party platform.
(b) The Operator shall hold all tax amounts collected in trust for the Town and shall not
commingle such funds with other operating revenues.
(c) The obligation to collect the Tax arises upon completion of a booking or reservation,
whether or not the Guest subsequently cancels, unless a full refund is provided.
(d) Where accommodation fees are paid in a foreign currency or through an
intermediary, the Operator shall remit the equivalent amount in Canadian funds, based
on the value received.
ii. Quarterly Remittance Periods
The Tourist Accommodation Tax shall be remitted to the Town on a quarterly basis, for
the following periods:
o
Quarter 1 - January 1 to March 31
o
Quarter 2 - April 1 to June 30
o
Quarter 3 - July 1 to September 30
o
Quarter 4 - October 1 to December 31
iii. Remittance Deadline
(a) Remittance and the required reporting form shall be submitted within thirty (30) days
of the end of each Quarter.
(b) A remittance shall not be deemed received until both payment and the completed
statement have been delivered to the Town.
iv. Required Information
Each quarterly remittance shall be accompanied by a statement certified by the
Operator, detailing:
(a) total revenue received from accommodations during the Quarter;
(b) the number of accommodation units available and the number rented;
(c) the nightly or daily rates charged;
(d) the total amount of Tourist Accommodation Tax collected; and
(e) any applicable exemptions or adjustments claimed, with supporting documentation.
v. Method of Payment and Filing
(a) Remittances may be made by electronic funds transfer, cheque, or other method
approved by the Town.
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(b) The Town may prescribe an official remittance form and may require operators to
file electronically through a portal or other system designated by the Town.
(c) Failure to file the required form shall constitute non-compliance under this By-Law,
regardless of whether payment was submitted.
vi. Record-Keeping
(a) Every Operator shall retain, for a minimum period of six (6) years, all records relating
to accommodation revenues, taxes collected, exemptions claimed, and remittances
made under this By-Law.
(b) Such records shall be made available to the Town for inspection or audit upon
request, in accordance with section 129(3)(e) of the Act.
5. EXEMPTIONS:
i. The following classes of accommodations shall be exempt from the Tourist
Accommodation Tax imposed under this By-Law:
(a) Non-profit or charitable organizations that operate accommodations primarily for
social, cultural, recreational, or educational purposes, and not for commercial gain;
(b) Municipal or government-owned accommodations operated directly by the Town or
another order of government;
(c) Tourist information centres or reception facilities operated by or on behalf of the
Town or a recognized non-profit tourism association, including any associated
campground or recreational vehicle (RV) park, where the revenues are used solely for
tourism promotion or community benefit; and
(d) Any other person, organization, or class of accommodation that may be exempted
by resolution of Council.
ii. Application for Exemption
An Operator claiming an exemption under subsection (1) shall submit a written request
to the Town Clerk, identifying the accommodation, its ownership structure, and the
basis of the exemption. The Town may require proof of non-profit or charitable status,
financial statements, or other supporting documentation.
iii. Review and Revocation
The Town may review an exemption at any time to confirm continued eligibility. If the
basis for an exemption ceases to exist, the Town may revoke the exemption by written
notice, and the accommodation shall become subject to the tax as of the date
specified in that notice.
iv. Record of Exemptions
The Town shall maintain a public record of all accommodations exempted under this
By-Law, including the effective dates of each exemption.
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6. NON-COMPLIANCE - FAILURE TO REMIT
i. Failure to Collect or Remit
Where an Operator fails to collect or remit the Tourist Accommodation Tax in the
manner and within the time required under this By-Law, the Operator shall be
personally liable to the Town for the full amount of tax that should have been collected
and remitted.
ii. Interest on Outstanding Amounts
Any unpaid Tourist Accommodation Tax, penalty, or fee shall accrue interest at a rate
equal to the Bank of Canada prime lending rate plus three percent per annum,
compounded monthly, commencing on the first day following the date the remittance
became due.
iii. Penalty for Non-Compliance
In addition to interest on outstanding amounts, the Town may impose an administrative
penalty not exceeding ten percent (10%) of the outstanding amount for failure to remit
or file a required statement within the prescribed period.
iv. Deemed Assessment
Where an Operator fails to file a remittance statement or otherwise provide sufficient
information for the Town to verify the amount of Tax due, the Town may issue a
deemed assessment in accordance with section 7 of this By-Law.
v. Debt Due to the Town
Any amount assessed or deemed assessed under this By-Law constitutes a debt due to
the Town and is recoverable by any means permitted by law, including civil action.
vi. Lien for Unpaid Tax
The Town may, in addition to other remedies, create and register a lien against the
property of the Operator for any unpaid Tourist Accommodation Tax, penalties, or
interest, as authorized under section 129(3)(f) of the Act.
vii. Revocation of Permits
The Town may suspend or revoke any business licence, occupancy permit, or other
municipal approval held by the Operator until all outstanding amounts, including
interest and penalties, are paid in full.
viii. Continuing Offence
Each day that an Operator fails to comply with this section constitutes a separate and
continuing offence for the purposes of enforcement under the Act.
7. ASSESSMENT OF OUTSTANDING TAXES
i.
Authority to Assess
Where an Operator fails to file a quarterly return, remit the Tourist Accommodation
Tax, or otherwise provide sufficient information to determine the amount owing under
this By-Law, the Town may assess the amount payable based on any information
available to it, including but not limited to:
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o
the number of accommodation units operated; and,
o
average or advertised nightly rates.
ii.
Deemed Occupancy
For the purpose of an assessment under subsection 7(i), the Town may deem the
accommodation to have been occupied at one hundred percent (100%) occupancy for
the period under review, unless the Operator provides satisfactory evidence to the
contrary.
iii.
Inclusion of Penalties and Interest
An assessment made under this Section shall include any penalties and interest that
have accrued under this By-Law to the date of assessment.
iv.
Notice of Assessment
The Town shall issue a written notice of assessment to the Operator, specifying:
o
the period assessed;
o
the total amount of tax, penalties, and interest determined to be owing; and
o
the due date for payment, which shall not be less than 30 days from the date of
the notice.
v.
Finality and Collection
Unless the Operator provides documentation acceptable to the Town within the time
specified in the notice, the assessment shall be final and binding, and the amount
assessed shall be deemed a debt due to the Town and collectible in the same manner
as other taxes, including through lien registration under section 129(3)(f) of the Act.
8. AUDIT & INSPECTION
i.
The Town of Labrador City and its agents, employees and/or officers may at any time
audit and/or inspect Accommodations and any Property utilized in conjunction with
Accommodations to ensure the accuracy of information required to be provided to the
Town under this Bylaw, including but not limited to the number of units in
Accommodations, occupancy of units of Accommodations, rates charged to Guests and
revenue collected from Accommodations.
ii.
The power of audit and inspection under section 7.1 shall include the Accommodations
and any units or parts thereof; any Property used and/or occupied in conjunction with
the Accommodations; and any business records, financial records or other records of any
kind or sort reasonably required in the opinion of the Town to verify information or
remittances required to be made to the Town by law.
9. USE OF FUNDS
i. Purpose of the Fund
All proceeds collected under this By-Law shall be deposited into a dedicated Tourist
Accommodation Tax Reserve Fund, established and maintained by the Town.
The Fund shall be used exclusively for tourism-related purposes, including the
promotion, enhancement, and development of tourism within the Town and
surrounding region.
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ii. Eligible Expenditures
Without limiting the generality of subsection (i), eligible expenditures may include:
(a) marketing, advertising, and branding initiatives that promote the Town as a tourist
destination;
(b) enhancement of visitor services, information centres, and tourism-related facilities or
amenities;
(c) support for tourism events, festivals, and cultural or recreational programming that
attract visitors;
(d) improvements to public spaces and infrastructure that directly benefit the visitor
experience;
(e) collaboration with regional or provincial tourism agencies to advance shared
marketing and development objectives; and
(f) research, data collection, and performance tracking to evaluate tourism activity and
impact.
iii. Administrative Costs
In accordance with section 129(9) of the Act, the Town may allocate up to twelve
percent (12%) of the total annual proceeds of the Tourist Accommodation Tax to cover
administration and enforcement expenses, including staffing, compliance monitoring,
and auditing.
iv. Accounting and Transparency
(a) The Town shall maintain separate accounting records for all revenues and
expenditures related to the Tourist Accommodation Tax Fund.
(b) All revenues and expenditures shall be reported annually to Council and the public
through the Town's audited financial statements or such other reporting format as
Council may direct.
(c) Any unspent balance remaining in the Fund at year-end shall be carried forward and
used solely for tourism-related purposes in subsequent fiscal years.
v. Oversight and Planning
(a) The Town may, by resolution, adopt a Tourism Investment or Marketing Plan to
guide allocation of funds under this By-Law.
(b) The Town may enter into partnership agreements with recognized non-profit or
regional tourism organizations for the delivery of eligible programs and services funded
through the Tourist Accommodation Tax Reserve Fund.
10. EFFECTIVE DATE
This By-Law comes into force on the 1st day of April, 2026.