Halifax's 3% Marketing Levy Explained: Who Pays, How to Add It and When to Remit

Short-term rental operators in Halifax must charge guests a 3% marketing levy on nightly rates before tax. This municipal fee supports tourism initiatives in the region, with hosts responsible for collection and remittance. Here is everything you need to know about who pays, how to calculate it, and when to submit.

Who Pays the Levy

Responsibilities of Operators

Operators of short-term rentals are required to collect the 3% Marketing Levy on eligible bookings and remit it to Halifax Regional Municipality. The fee must be added to the booking price, with guests informed of the charge before confirmation.

What Guests Need to Know

For short-term stays qualifying under the regulation, the 3% levy is included in the total accommodation cost paid by guests.

Exemptions to the Levy

Bookings lasting more than 31 consecutive days are exempt from the 3% Marketing Levy. Stays exceeding 31 days do not incur this fee.

How to Calculate and Add the Levy

Step-by-Step Calculation

The marketing levy equals 3% of your nightly accommodation rate, calculated before HST application. Multiply the nightly rate by 0.03.

Example: For a $200 nightly rate:

• Levy: $200 x 0.03 = $6.00
• Subtotal: $200 + $6 = $206
• HST (15%): $206 x 0.15 = $30.90
• Total per night: $236.90

It is important to calculate HST on the combined total of the accommodation price and levy, not the base rate alone. For multi-night stays, multiply the per-night calculation by the number of nights.

Adding the Levy to Your Pricing

The marketing levy must appear as a separate line item on all invoices and receipts for transparency and compliance. Structure pricing documents as follows:

• List the nightly accommodation charge
• Include the marketing levy as a distinct line item
• Show HST calculated on the combined subtotal (accommodation + levy)

Update booking confirmations with explanatory notes about the levy to reduce confusion and disputes.

Handling Bundled Services

When offerings combine accommodation with extras like meals, cleaning, or activities, apply the 3% levy only to the accommodation portion of the package. Identify the standalone accommodation cost first.

Example: A $300 package with $200 accommodation and $100 other services:

• Levy applies only to $200: $200 x 0.03 = $6.00

Separate accommodation costs from additional services in records for accurate reporting and audit readiness.

When and How to Submit the Levy

Monthly Payment Schedule

The monthly marketing levy must be remitted to the municipality via the online Monthly Marketing Levy Remittance Report by the 15th of each month following the collection of the levy. Missing the deadline incurs a $25 daily penalty and interest charges per Administrative Order 14.

Submit a Monthly Marketing Levy Remittance Report showing zero collections even during months without bookings — unless all accommodations sell exclusively through online platforms.

Reporting and Payment Process

Before first submission, contact 311 to obtain a mandatory account number, essential for linking payments to tourism accommodation registration.

The municipality requires an online Monthly Marketing Levy Remittance Report including total levy amounts collected, number of nights booked, and total accommodation revenue for the reporting period. Payments are accepted via cheque or electronic transfer.

Platform-Specific Collection:

• Airbnb, Misterb&b, and Seabright Cottage Rentals: Platform collection began September 1, 2024
• Vrbo, Expedia, and Booking.com: Platform collection began October 1, 2024

For direct bookings where you collect payment, remit only the levy on those bookings; platforms handle their portion separately.

Record-Keeping Requirements

Maintain digital copies of invoices, guest payment confirmations, and remittance reports. Clearly separate accommodation charges from additional services for accurate levy calculations. Track whether bookings occurred through platforms or direct channels to prevent double-paying the levy on platform-handled bookings. Organize records chronologically for easy municipal access during compliance checks.

Compliance Tips for Short-Term Rental Hosts

Steps for Compliance

All registered accommodations must collect and remit the 3% marketing levy. Call 311 to obtain your account number. List the levy as a separate line item on guest charges. Mark your calendar for the 15th of each month — the remittance deadline. Submit reports even for zero-booking months unless exclusively platform-sold.

Missing the deadline can cost you $25 per day in penalties, plus interest charges.

Staying Updated on Regulations

Halifax's marketing levy increased from 2% to 3% in October 2023, demonstrating how regulations shift. Regular checks of Halifax Regional Municipality announcements and official website communications are essential. Monitor updates from booking platforms regarding collection procedure changes.

Funds from the levy are allocated to two key areas: 65% supports destination marketing, while 35% is directed toward community events.

Frequently Asked Questions

How can I comply with Halifax's 3% marketing levy when managing direct bookings?

Register your property with Halifax Regional Municipality. Adjust pricing to include 3% of the nightly rate in guest bills, collecting the levy at booking. Remit monthly using the official form before the deadline. Monitor regulatory updates to maintain compliance.

How will the collection of Halifax's 3% Marketing Levy change for short-term rental hosts in late 2024?

Starting late 2024, booking platforms like Airbnb collect the 3% levy directly from guests during booking and manage its remittance to the municipality. This eliminates manual levy calculation by hosts and streamlines administrative processes while ensuring timely, compliant submissions.

What happens if I miss the monthly deadline for submitting the 3% Marketing Levy?

Missing the deadline results in $25 for each day you are late, plus interest on the unpaid balance. Set calendar reminders, verify calculations, and schedule payments ahead of time to avoid delays and penalties.