Short Term Rentals & Tourism Accommodation Levy FAQs


Short-Term Rental Operation | Tourism Accommodation Levy
Frequently Asked Questions

On February 15 and 28, 2022, Charlottetown City Council voted to approve a series of rules and regulations that would govern the operation of short-term rentals within the City of Charlottetown, effective March 28, 2023. Below please find information on the most commonly asked questions pertaining to property eligibility, the registration process, Tourism Accommodation Levy collection and remittance, and non-compliance.

 Forms and Approvals


 Tourist Home (Short-Term Rental) Application
 Tourism Accommodation Levy Form
  Approved Tourist Home (Short Term Rental) Permit List  (updated weekly)

Pathway to Short-Term Rental Operation in the City of Charlottetown:

  1. Property Compliance
    Verify that your property is in compliance with the City of Charlottetown’s Zoning and Development Bylaw by completing a Tourist Home (Short-Term Rental) Application and submitting it to the City of Charlottetown’s Planning and Heritage Department, along with a $50 fee. Questions pertaining to property eligibility can be found below under “Property Eligibility”.

    If your property does not comply with the City of Charlottetown’s Zoning and Development Bylaw, you cannot legally operate a short-term rental within the City of Charlottetown.            

  2. Provincial Licensing
    A Tourism Establishment License is required to operate under the Tourism Industry Act in Prince Edward Island. Obtain a Tourism Establishment License through the Province of Prince Edward Island and pay the associated licensing fee (varies based on size of establishment). Note that applications must be filed and fees paid before operations begin. A $180 new property inspection fee will apply to those properties not previously licensed through the Province of Prince Edward Island and the Province will verify compliance with the City of Charlottetown’s Zoning and Development Bylaw as part of their licensing process.

     

  3. Tourism Accommodation Levy Collection and Remittance
    Collect the 3% Tourism Accommodation Levy on all stays and remit monthly to the City of Charlottetown’s Finance Department. Questions pertaining to collection and remittance of the Levy can be found below under “Tourism Accommodation Levy Collection and Remittance”.

     

  4. Future Considerations
    Pending the adoption of a Council-approved licensing bylaw, short-term rental operators will also be required to hold a valid Short-Term Rental License from the City of Charlottetown. It is anticipated that this licensing requirement will come into effect on October 31, 2023. A dedicated communications campaign will be initiated in the months preceding this date to ensure operators fully understand the application process and their licensing responsibilities in advance of the licensing deadline.


Property Eligibility

I own more than one property within the City of Charlottetown. Can I operate short-term rentals at all of my properties?

Only properties that serve as the operator’s/host’s principal residence are eligible to host short-term rentals in the City of Charlottetown.

What is considered a principal residence?

A principal residence is a residential unit owned or rented by an individual, alone or with others, where the proposed operator/host lives and conducts daily affairs, including but not limited to paying bills and receiving documentation related to identification, taxation, insurance, driver’s licenses, income tax returns, medical plans, vehicle and voter registration, or similar information; and the proposed operator/host has no other property designated as such within the City of Charlottetown or any other jurisdiction.

Are all types of principal residences permitted to host short-term rentals?

Short-term rentals approved as Home Occupations (Tourism Accommodation) are permitted in any type of dwelling unit except for an apartment dwelling and must be located within a residential zone.

I have a fully contained suite located within/on the property of my principal residence. Am I able to offer this suite as a short-term rental?

Short-term rentals are permitted in secondary or garden suites only when the operator/host is present in the principal residence during the time of the short-term rental stay.

Do I have to be on-site during a short-term rental stay?

The operator/host does not have to be present at the time of stay if the entire dwelling unit is rented, except in the case of short-term rentals operated in a secondary or garden suite.

Is there a limit on the number of short-term rentals I can host at one time?

Only one short-term rental booking is permitted in a dwelling unit at one time. Operators/hosts are not permitted to divide available accommodation space into multiple, concurrent bookings.

My property will no longer be eligible to host short-term rentals after March 28, 2023. Can I honour bookings made prior to this date (regardless of date of stay)?

No, short-term rentals stays after March 28, 2023 will only be permitted in eligible dwelling units as outlined above. Bookings made prior to March 28, 2023 will not be grandfathered for non-complying properties.

Property Registration

Properties eligible to host short-term rentals will be required to obtain a Tourism Establishment License through the Province of Prince Edward Island. Operators will also be required to obtain a Short-Term Rental License through the City of Charlottetown’s Planning Department beginning October 31, 2023. Both the Tourism Establishment License and Short-Term Rental License must be renewed annually.

Am I able to accept and host short-term rental bookings prior to obtaining a Tourism Establishment License through the Province of Prince Edward Island?

No, applications must be filed and fees paid before operations begin. For more information, please visit: Licensed Tourism Accommodations | Government of Prince Edward Island.

Am I able to accept and host short-term rental bookings prior to obtaining a Short-Term Rental License from the City of Charlottetown?

Yes, operators with properties that comply with the City of Charlottetown’s Zoning and Development Bylaw are able to accept and host short-term rental bookings without a City of Charlottetown Short-Term Rental License until October 31, 2023. After this date, a license will be required to operate. More information will be available to operators on licensing in the months preceding October 31, 2023.

Operators are still required to obtain a Tourism Establishment License through the Province of Prince Edward Island.

How do I apply for a Short-Term Rental License with the City of Charlottetown?

It is anticipated that a Short-Term Rental License requirement will be brought into effect on October 31, 2023, pending the adoption of a Council-approved licensing bylaw. A dedicated communications campaign will be initiated in the months preceding this date to ensure operators fully understand the application process and their licensing responsibilities in advance of the licensing deadline.

Tourism Accommodation Levy Collection and Remittance

The City of Charlottetown has a Tourism Accommodation Levy Bylaw requiring all tourism establishments in the City of Charlottetown, regardless of size, to collect and remit a 3% Tourism Accommodation Levy on all stays less than 30-days in duration, to the City of Charlottetown’s Finance Department on a monthly basis.

What is the Tourism Accommodation Levy used for?

The Tourism Accommodation Levy is a tourism-industry supported tax which drives the efforts of Discover Charlottetown, Meetings and Conventions PEI, and the Charlottetown Special Events Reserve Fund.

Distribution of the Levy between these organizations is equal, with one-third of collected revenue distributed to each of the organizations monthly to support marketing campaigns, event attraction efforts, and tourism-driving event development and delivery.

How do I calculate the Levy owing on a guest’s stay?

The Tourism Accommodation Levy is equivalent to 3% of the gross total of accommodations for a guest’s stay. The Levy is not applicable to specialized services guests may enjoy (e.g., meals, parking, Wi-Fi, cleaning fees, platform fees, etc.).

Are there exemptions to Tourism Accommodation Levy collection?

Yes, continuous stays of one month or longer are exempt from the Tourism Accommodation Levy, as are the following types of stays:

  • Stays taking place while a guest or a guest’s family are receiving medical treatment or seeking specialist medical advice. Written documentation from a hospital, provincial health-care centre, or PEI-licensed physician must be provided to the operator confirming that the guest or guest’s family member is receiving medical treatment and that accommodation is required, including dates.
  • Students residing in buildings owned or operated by a post-secondary institution who are registered students of the post-secondary institution, regardless of length of stay.

Is there a penalty for not collecting/remitting the Tourism Accommodation Levy?

Yes. Any person who contravenes any provision of the Tourism Accommodation Levy Bylaw is guilty of an offense punishable by summary conviction and on conviction is liable a) on a first conviction to a fine of $500 to a maximum of $1,000; and b) for a subsequent conviction for the same or another provision of the regulation to a fine of $1,500 to a maximum of $5,000.

Are there reporting requirements?

Yes. Operators must report accommodation sales to the City of Charlottetown’s Finance Department on a monthly basis by completing the Tourism Accommodation Levy Form. The submission and remittance deadline is 20 days after the end of the month covered by the form, even if no Levy is payable.

How do I submit my monthly Tourism Accommodation Levy form electronically?

Monthly Tourism Accommodation Levy forms can be filed electronically by visiting www.charlottetown.ca and accessing the Tourism Accommodation Levy Form. Complete the required information and submit it directly to the City’s Finance Department by clicking the blue “submit” button found at the bottom of the page. The City’s Finance Department will issue an invoice, complete with payment information, within two business days of your submission via the email address provided by you on the form. The submission and remittance deadline is 20 days after the end of the month covered by the form, even if no Levy is payable.

Do I have to submit my monthly Tourism Accommodation Levy form electronically?

No. The Tourism Accommodation Levy Form can be printed by accessing the from the City’s website, or can be picked up at Charlottetown City Hall, 199 Queen Street.

How do I remit collected Tourism Accommodation Levy to the City of Charlottetown?

There are different methods to remit collected Tourism Accommodation Levy, depending on how you submit your Tourism Accommodation Levy Form – electronically or by paper.

For Tourism Accommodation Levy Forms that are submitted electronically, an invoice with payment options will be emailed to you within two business days of submitting the monthly form. Upon receipt of the invoice, there are three ways to remit any Tourism Accommodation Levy owing:

  1. Pay online at myaccount.charlottetown.ca
    1. Select the “One Time Pay” option.
    2. Make a payment using the account number located on your invoice.
  2. Pay in-person at Charlottetown City Hall, 199 Queen Street; please bring a copy of the invoice or Tourism Accommodation Levy Form with you.
  3. Pay via cheque, please note the invoice number on the cheque, and mail it to:
    City of Charlottetown

PO Box 98          
Charlottetown, PE C1A 7K2

If you choose not to submit the Tourism Accommodation Levy form electronically, you will not receive an invoice and can either:

  1. Pay in-person at Charlottetown City Hall, 199 Queen Street; please bring a copy of the Tourism Accommodation Levy Form with you.
  2. Pay via cheque, please include a copy of the Tourism Accommodation Levy Form with the cheque, and mail them to:
    City of Charlottetown
    PO Box 98
    Charlottetown, PE C1A 7K2

Irrespective of method used, the submission and remittance deadline is 20 days after the end of the month covered by the form, even if no Levy is payable.

Non-Compliance

How do I report a suspected non-complying property?

The City of Charlottetown maintains a public directory of compliant short-term rental properties. The list of Approved Tourist Home (Short Term Rental) Permits
will be updated weekly as approvals are confirmed.

If you believe that a short-term rental property is operating outside the established rules and regulations of the City of Charlottetown, please contact the City’s Planning Department at [email protected] or 902.629.4158.

Key Contacts

For questions related to property eligibility, licensing, and non-compliance, please contact the City’s Planning Department at [email protected] or 902.629.4158.

For questions pertaining to Tourism Accommodation Levy collection or remittance, contact Devarsh Parekh in the City’s Finance Department at [email protected] or 902.566.5548.


Background Reports and Presentations

The City of Charlottetown is committed to providing accessible information and is working diligently to ensure the public is informed.

To view the previous presentations and documents on the topic, click the links below: