Tourist accommodation encompasses any establishment that provides lodging for a fee. This category includes larger commercial properties, such as hotels, resorts, hostels, and inns, as well as short-term rentals (STRs), which usually involve private residences rented out for short stays.
Operators of both larger commercial properties and STRs must obtain a business licence from the City of Yellowknife, and some may require additional permits.
Beginning April 1, 2025, a 4% Tourist Accommodation Tax will be applied to the purchase price, which includes the basic room rate, and any additional charges or fees directly related to the stay. The 4% tax is collected by the operator, and remitted to the City of Yellowknife. The funds collected through this tax will be strategically allocated to grow the tourism sector in Yellowknife. For further details on the specifics of the tax and its intended use, please refer to Tourist Accommodation Tax By-law No. 5099.
| Charging tourists the Tourist Accommodation Tax | ||||||||||
| Operators are required to charge visitors who stay in licensed tourist accommodation within the City of Yellowknife a 4% Tourist Accommodation Tax. Goods and services tax (GST) The Tourist Accommodation Tax is required by the City of Yellowknife and is therefore exempt from Goods & Services Tax (GST) for both you and your guests. Informing your customers The price and total amount of the Tourist Accommodation Tax must be shown on any invoice, receipt, bill or other document issued for accommodations. |
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| Paying the Tourist Accommodation Tax | ||||||||||
| The City of Yellowknife will collect the 4% Tourist Accommodation Tax from operators on a quarterly basis. The operator will provide the City with their report via an online portal, and the 4% Tourist Accommodation Tax will be charged based off the total revenue reported. The first reporting and remittance deadline is July 30, 2025 (for the reporting period of April 1, 2025 to June 30, 2025). Payment and report deadlines
Paying online Operators will be able to submit their quarterly reports and remittances through an online portal with the City of Yellowknife. This user-friendly portal will go live before the first remittance deadline on July 1, 2025. Paying by mail or in-person
Penalties The penalty for failing to collect or remit payment of the Tourist Accommodation Tax is between $250 to $500 for every conviction. |
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| Quarterly reporting | ||||||||||
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As an accommodation operator, you are required to submit a Tourist Accommodation Tax Remittance Report four times a year via an online portal, by mail or in-person. For those who wish to submit their report online, a user-friendly portal will go live before the first remittance deadline on July 1, 2025. More information on how to use the online portal will be available once the portal is live. Those submitting their report by mail or in-person must fill out and print off the form via the online portal, and either mail it to City Hall or drop it off in-person. Even if no rooms were sold during the reporting period, a Remittance Report must be submitted. You are required to maintain records of accommodation sales, the amount of tax collected, and the taxes paid to the City. These records should be kept for at least six years. For details on report and payment deadlines, see the table above. |
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| Exemptions from Tourist Accommodation Tax | ||||||||||
Operators do not need to charge visitors the Tourist Accommodation Tax under the following circumstances:
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| Questions | ||||||||||
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Questions on bookings prior to April 1, 2025
Q: A customer booked their stay in the fall of 2024 for a visit in summer of 2025. The customer will pay in full the first day of their visit. Does the customer need to pay the 4% marketing levy on this booking? A: Yes, the customer pays the marketing levy because the payment was made after April 1, 2024.
Q: A customer booked their stay in the fall of 2024 for a visit in Summer 2025. The customer paid a deposit on the booking and will pay the remaining amount on the first day of their visit. Does the customer need to pay the 4% marketing levy on this booking? A: Yes, the marketing levy is payable on the full amount of the booking because the final payment will be made after April 1, 2025.
Q: A customer booked their stay in the fall of 2024 for a visit in the Summer of 2025 and paid in full at the time of booking. Does the customer need to pay the 4% marketing levy on this booking? A: No, the customer does not need to pay the marketing levy on this booking because it was paid in full before the marketing levy by-law came into effect.
Q: A customer booked their stay in fall of 2024 for a visit in summer of 2025. The customer provided a credit card to hold the room but was not charged. The payment will be processed 24 hours before their visit. Does the customer need to pay the 4% marketing levy on this booking? A: Yes, the marketing levy is payable on the full amount because the payment will be made after April 1, 2025.
For general inquiries about the Tourist Accommodation Tax or questions on how to set up an account to submit the remittance report and payment, please contact our Economic Opportunities and Investments team at ecd@yellowknife.ca or call (867) 920-5600 |