On February 24, 2022, Alberta Finance Minister, Travis Toews, announced the 2022 Alberta Budget. As the province is poised to be a leader in economic growth, low business taxes are a part of Alberta’s Recovery Plan, as well as low personal taxes to help Albertans keep more in their pockets. No changes were made to the existing personal and corporate tax rates.
Crowe MacKay’s tax experts summarize Alberta’s new tax measures below.
Tourism levy
On April 1, 2021, the Tourism Levy Act was amended to extend Alberta’s tourism levy to short-term rentals listed on online marketplaces (ex. AirBnb). The amendments authorized online marketplaces to voluntarily collect and remit the levy on behalf of their Alberta hosts. Online marketplaces, however, have not taken on this responsibility. Therefore, new legislative amendments will be brought forward in 2022 requiring online marketplaces to collect and remit the tourism levy on behalf of their Alberta short-term rental hosts.
The amendments will also allow traditional accommodation providers – such as hotels and motels – listed on online marketplaces to continue to collect and remit the tourism levy on their own behalf.
Tobacco tax
Smokeless tobacco, such as chewing tobacco, is currently taxed at the rate of 41.25% per gram. Effective March 1, 2022, the new smokeless tobacco tax rate will be reduced to 27.5% per gram.
Education property tax
The education property tax provides Alberta’s education system with a stable source of funding, supporting all public and separate school students. The tax helps pay for instructional costs, including teacher salaries, textbooks, and other classroom resources. As the economy continues to recover from the pandemic, the previously frozen property tax revenues for 2020 and 2021 will be increased modestly by 1.5% to help keep up with the increase in education operating costs.
Other initiatives
Canada workers benefit (CWB)
CWB is a federal refundable tax credit that provides tax relief for lower-income working individuals and families. The benefit has been enhanced for Albertans and will now be available to a wider range of income earners.
Under the enhanced reconfiguration benefit, no CWB recipient will receive a lower benefit, and many will receive a higher benefit. These enhanced CWB payments will begin in 2022.
Learn more about the enhanced CWB benefit
Taxation on vaping products
Alberta will be working with the Government of Canada to explore a coordinated taxation approach to collect a provincial tax on vaping products sold in Alberta instead of introducing a stand-alone provincial tax.
For more information on the 2022 Alberta Budget, please visit the Government of Alberta’s website
This article has been published for general information. You should always contact your trusted advisor for specific guidance pertaining to your individual tax needs. This publication is not a substitute for obtaining personalized advice.
If you are looking for Tax Services, Crowe MacKay provides personalized support. Our tax professionals will help you maximize tax-planning opportunities and ensure the minimum amount required by law is paid.
