Information & Resources

The Tourist Accommodations Tax (TAT) is an optional municipal revenue tool established under Section 129 of the Towns and Local Service Districts Act. It enables eligible municipalities in Newfoundland and Labrador to implement a by-law authorizing the collection of a tax on short-term tourist accommodations, with all revenues dedicated to supporting tourism growth and development.

Hospitality Newfoundland and Labrador (Hospitality NL), in partnership with the Government of Newfoundland and Labrador and Municipalities Newfoundland and Labrador (MNL), is committed to supporting municipalities, accommodation operators, and tourism stakeholders with practical information, implementation guidance, and best practices.

Whether your municipality is considering implementing a Tourist Accommodations Tax, or you are an accommodation provider responsible for collecting the tax, this resource centre is designed to help you understand the legislative framework, governance expectations, and implementation process.

What is the Tourist Accommodations Tax?

The Tourist Accommodations Tax is a discretionary municipal tax that may be established through a municipal by-law.

Key features include:

• Municipal implementation is optional—not mandatory.
• The maximum tax rate is 4% of the daily accommodation rate.
• The tax is collected by registered tourist accommodation operators on behalf of the municipality.
• Accommodation providers act as collection agents and remit the tax to the municipality in accordance with the municipal by-law.
• Up to 12% of revenues may be used for administration and collection costs.
• The remaining revenues must be used exclusively for tourism purposes.

Guiding Principles

Successful implementation depends on more than adopting a by-law. It requires collaboration, transparency, and a shared commitment to strengthening tourism.

Hospitality NL encourages municipalities to:

• Engage accommodation operators early and throughout implementation.
• Develop clear governance and accountability practices.
• Establish advisory committees with tourism sector representation where appropriate.
• Invest revenues in initiatives that strengthen visitor experiences, destination development, and tourism capacity.
• Work collaboratively with regional tourism organizations and provincial partners.

Tourism-Only Investment

The intent of the Tourist Accommodations Tax is to create a dedicated funding source that supports tourism growth.

Revenue generated through the tax should be invested in initiatives such as:

• Destination and product development
• Visitor services
• Tourism infrastructure
• Conference and event attraction
• Wayfinding and visitor amenities
• Accessibility improvements
• Tourism partnerships and regional collaboration

The tax is not intended to supplement general municipal operating budgets, and investments should demonstrate a clear connection to tourism outcomes.

Need Assistance?

Hospitality NL is available to support municipalities and tourism operators throughout the implementation process.

Whether your community is exploring the Tourist Accommodations Tax or looking for guidance on implementation, governance, stakeholder engagement, or industry collaboration, our team can help connect you with information, best practices, and available resources.

Resources

Download the documents below to learn more about the Tourist Accommodations Tax framework and implementation guidance.