Québec Announces Changes to the Tax on Lodging

Québec maintains a partnership fund to support the promotion and development of Québec tourism. This fund is financed predominantly by a tax on lodging that applies to sleeping accommodations purchased in regions of Québec where a regional tourism association (RTA) has asked the government to put it in place.

Recently, the Quebec government agreed to make changes to the tax on lodging system, effective November 1, 2016, to facilitate the financing of the fund by the RTAs, including:

• extension of the lodging tax base to include sleeping accommodation in the “educational establishments” class and ready-to-camp units contained in the “camping establishments” class; and
• standardization of the tax rate on lodging to 3.5% (RTAs will no longer have the option of choosing between a specific tax of $2 or $3 per overnight stay or an ad valorem tax of 3% of the price of each overnight stay). 

Further details on these changes can be found in Information Bulletin 2016-4.