Alberta Municipalities Endorse New Tourism Tax Framework
Municipal leaders across Alberta have taken a significant step toward implementing new revenue streams for local governments. On Thursday, November 13, 2025, delegates at the Alberta Municipalities conference passed a resolution supporting the creation of a tax on hotels and short-term rental accommodations throughout the province.
What the Resolution Means for Communities
The approved measure grants municipalities the authority to levy taxes on temporary accommodations, including traditional hotels and platforms like Airbnb and VRBO. This decision comes as many Alberta communities struggle with infrastructure costs associated with tourism while seeking sustainable funding sources beyond property taxes.
The resolution received substantial support from urban and rural municipalities alike, reflecting widespread recognition of the need for diversified municipal revenue. Proponents argue that visitors who use local services should contribute directly to maintaining infrastructure through accommodation taxes.
Potential Impacts and Next Steps
While the resolution itself doesn't immediately implement new taxes, it creates a unified position that municipalities can present to the provincial government. Individual municipalities must now develop specific implementation plans and seek provincial approval for any new tax bylaws.
Industry representatives have expressed mixed reactions, with some tourism operators concerned about competitiveness while others acknowledge the potential benefits of dedicated tourism marketing funds. Similar taxes in other Canadian provinces have typically ranged between 2-4% of accommodation costs.
The revenue generated could support various municipal services including tourism promotion, infrastructure maintenance, and community facilities that benefit both residents and visitors. Municipal leaders emphasized that any implementation would include consultation with accommodation providers and tourism stakeholders.
