Budget 2019 was introduced in the Alberta Legislature on October 24, 2019. To further deter tobacco use and ensure tobacco tax rates keep up with inflation, Budget 2019 includes a tax increase on tobacco products. Tobacco taxes decrease the affordability of tobacco products, encouraging current users to quit and deterring non users from ever starting.

The tobacco tax increase is effective at 12:01 a.m. on October 25, 2019. The tax on a carton of 200 cigarettes will be increased by $5 to $55 per carton. The tax on loose tobacco will rise to 41.25 cents per gram, and the tax on cigars will be increased to 142% of the taxable price of the cigar, with a minimum tax per cigar of 27.5 cents and a maximum of $8.61. Registered tobacco tax collectors are expected to comply with these changes.

See Special Notice Vol. 3 No. 17, Tobacco Tax Rate Increase, or the Budget 2019 Tax Plan (PDF, 7.5 MB) for more information.

Bill 1, An Act to Repeal the Carbon Tax, received Royal Assent on June 4, 2019. Alberta The carbon levy no longer applies to any type of fuel effective as of the beginning of the day on May 30, 2019. Fuel sellers are expected to comply with the changes set out in the Bill.

See the updated Fuel Tax and Tobacco Tax Rate Chart and AITE Special Notice Vol. 4 No. 16 – Repeal of the Carbon Levy for more information.

Contact Tax and Revenue Administration (TRA) if you have any questions related to the administration of the carbon levy.

Contact Canada Revenue Agency (CRA) if you have questions related to the federal fuel charge under the Greenhouse Gas Pollution Pricing Act (Canada).

The Government of Alberta recognizes that many First Nations people and communities in the province prefer not to describe themselves as Indians/Indian bands. These terms have been used where necessary to reflect their legal meaning in the federal Indian Act.

Overview

The Alberta Indian Tax Exemption (AITE) program consists of:

  • An exemption from taxes and levies for eligible consumers and bands at the time of purchase on:
    • fuel products purchased on reserve in Alberta or delivered to reserve
    • tobacco products purchased on reserve in Alberta
    • accommodation purchased on reserve in Alberta
  • A refund of the Alberta fuel tax and carbon levy on fuel to fuel sellers when the fuel is sold or delivered to eligible consumers on reserve in Alberta.
  • A refund of the Alberta tobacco tax on tobacco products sold by retailers to eligible consumers on reserve in Alberta.
  • A refund of the Alberta tourism levy to operators that provide accommodation on reserve to eligible consumers.
  • Information for tobacco wholesalers and fuel suppliers that provide products to registered retailers making tax-exempt sales to eligible consumers.

Definition of the AITE card

The AITE card is issued by Tax and Revenue Administration (TRA) to eligible consumers and bands. This card must be presented to the retailer or accommodation operator at the time of purchase to show the retailer that the fuel, tobacco or accommodation may be sold to the cardholder exempt from tax or levy.

Eligibility

You are an eligible consumer, and may apply for an AITE card, if:

  • you are an “Indian”, as defined in the Indian Act (Canada), who is 16 years of age or older
  • you are a “band”, as defined in the Indian Act (Canada), whose reserve is partially or totally located in Alberta
  • you are a band whose band office is located in Alberta

No incorporated entity is eligible for the AITE program.

Form instructions

Trouble opening or completing fillable PDF forms?

Fillable PDF forms do not open properly on some mobile devices and web browsers. If the form doesn't open, or you can't complete the form, or you see a "please wait" message, follow these steps to complete and save fillable forms from Tax and Revenue Administration (TRA):

  1. Right-click on the form link and select "Save Target As" or "Save Link As", and save the form to your computer.
  2. Launch Adobe Reader.
  3. Open the PDF from within Adobe Reader. You can now fill and save your form.

To submit your forms

Forms cannot be sent through email. Complete and print your forms and bring, mail or fax them to TRA.

Apply for an AITE card

Step 1: Fill out the AITE Declaration form

Step 2: Apply

  • Bring, mail or fax your completed declaration form to TRA.

Step 3: After you apply

  • When your application is approved, TRA will mail your AITE card to the address indicated on the declaration form.

If you need a replacement card

  • Complete and submit a new Alberta Indian/Indian Band Declaration (AT4805) (PDF, 138 KB) to receive a replacement card if your name has changed, or when your card:
    • is lost or believed to be stolen (notify TRA immediately if this occurs)
    • has expired and a replacement card was not received
    • has been cancelled
    • is damaged

Get a tax or levy refund

How to get a carbon levy refund

Eligible consumers may apply for a refund when the carbon levy was paid in error. Carbon levy refund applications must be received within 4 years from the end of the year in which the fuel was purchased.

Step 1: Complete and submit the claimant registration

Step 2: Register for TRACS

Step 3: Complete the refund application

  • Complete the carbon levy claimant refund application in your TRACS account.

Step 4: Receive your refund

  • Receive your refund by direct deposit or cheque.

How to get a refund of fuel or tobacco tax or tourism levy

Eligible consumers may apply for a refund when the tax or levy was paid in error. Refund applications for fuel or tobacco tax or tourism levy must be received within 3 years from the end of the year in which the purchase took place.

To apply for a refund of tax or levy paid in error, submit a written request to TRA with the following information:

  • when the purchase took place
  • the supplier or tourism operator that charged the tax or levy
  • the location of the purchase or where the fuel was delivered

Who can provide the exemption?

Fuel or tobacco retailers wanting to provide the AITE to eligible consumers must be:

  • located on a reserve in Alberta

OR

  • a fuel seller that delivers fuel to eligible consumers located on reserve in Alberta

Accommodation operators wanting to provide the AITE to eligible consumers must be:

  • providing the accommodation on reserve in Alberta

AND

Sale of tobacco exempt of tobacco tax

Black stock tobacco is cigarettes, tobacco sticks and fine-cut tobacco that has a federal stamp indicating that duty has been paid, but does not have an Alberta stamp. In Alberta, black stock is sold to eligible consumers by AITE retailers and in duty-free shops.

Registered AITE retailers must:

  • purchase black stock tobacco tax included (cigarettes or fine-cut tobacco) from wholesalers with an Alberta tobacco tax licence
  • sell black stock to eligible consumers, that present their AITE card at the time of purchase, from a location located on reserve in Alberta
  • sell Alberta stamped tobacco product to all other consumers
  • apply weekly for a refund for all tax-exempt sales using an approved Point of Sale System (POSS) (AITE Direct)

For more information regarding the sale of tobacco to eligible consumers, see Information Circular AITE 3 – Exemptions Under the AITE Program.

Federal law prohibits the sale of tobacco to anyone under 18 years of age, including individuals with an AITE card.

Sale of fuel exempt of fuel tax and carbon levy

Registered AITE fuel sellers may sell clear gasoline or diesel fuel, and propane for motive purposes, to eligible consumers, exempt from the fuel tax and carbon levy.

All fuel purchased by an AITE fuel seller is purchased with the tax and carbon levy included.

Apply weekly for a refund for all tax and carbon levy exempt sales, using an approved Point of Sale System (POSS) (AITE Direct).

Register as an AITE retailer

Step 1: Fill out the AITE Retailer Registration form

Complete the following forms and print a copy of each:

Step 2: Make a copy of the Band Council Resolution

  • The Band Council Resolution must give authority to operate on the respective reserve.

Step 3: Submit documents

  • Bring, mail or fax your completed AITE Retailer Registration (AT4804), a copy of the Band Council Resolution, Application for Direct Deposit (AT4812), and void cheque to TRA.

Step 4: Review and sign Exempt Sale Retailer Agreement

  • TRA will send you a copy of an Exempt Sale Retailer Agreement (the Agreement).
  • Review the conditions outlined in the Agreement.
  • An authorized signing representative must sign and date the document in the presence of a witness, who must also sign the Agreement.
  • Bring, mail or fax your signed Agreement to TRA.

Step 5: Once approved

  • You will receive an approval letter and a copy of the Agreement signed by a TRA representative by mail.
  • POSS set up and confirmation from vendor.

Apply for an AITE retailer refund

Point of Sale System (POSS)

On a daily basis, TRA receives the details of the retailer’s tobacco and/or fuel sales. The POSS is then updated of cardholder changes and purchases-to-date information about individual cardholders.

Each Sunday, TRA totals the daily information received during the week and creates a claim.

Once the claim is approved, a refund will be generated and will be directly deposited into the retailer’s bank account within a few days.

You must maintain and provide upon request proper records, including purchase invoices, sales invoices, vouchers and other supporting documents for at least 4 years.

Paper Claims

Step 1: Complete the refund application

Step 2: Submit the refund application

  • Bring, mail or fax your completed refund application to TRA.

Step 3: Receive your refund

  • After your claim has been assessed you will receive your refund by direct deposit.

Direct deposit

Carbon levy inventory declaration

The 2019 Carbon Levy Online Inventory Declaration was required to be received by Tax and Revenue Administration (TRA) not later than July 2, 2019. Declarations are no longer being accepted.

TRA will review the inventory declaration if it was received on or before July 2, 2019.

If the inventory declaration is approved, TRA will issue a refund by cheque payable to the legal name provided and mail it to the address provided on the inventory declaration.

For more information, refer to:

How to pay

Maintain your account in TRACS

TRA Client Self-Service (TRACS) is a secure online system for authorized Tax and Revenue Administration (TRA) clients to conveniently conduct business with TRA. You can do the following tasks in TRACS:

  • view the status of submitted claims
  • submit documents
  • view status of prior assessments, financial details and letters of assessment and notices of reassessment (if available)
  • access financial information and view account period balances
  • update address and contact information
  • delegate account access to other employees or authorized individuals
  • view reports including cancelled cards, rejected sales and variance report

For more details, instructional videos and to log in to your TRACS account, see TRACS information.

Tax and levy rates

Publications and forms

Information circulars

These documents discuss procedural matters and administrative policies and practices for programs administered by TRA. They are updated as necessary and a revision number assigned.

Cross-program information circulars

AITE information circulars

Carbon levy information circulars

Special notices

These documents are used to announce changes to the legislation administered by TRA, or changes to administrative policies and practices carried out by TRA. These notices are time-specific, and meant to be transitory in nature. The information may eventually be incorporated into other publications, such as information circulars or web content.

AITE special notices

Carbon levy special notices

Tobacco tax special notices

Certified software

Forms

If you have trouble opening fillable PDF forms, see the form instructions.

Sign up for updates

Subscribe to get TRA's publications and announcements by email

Contact

To submit forms

Please note: forms cannot be sent through email. Complete and print your forms and bring, mail or fax them to:

Tax and Revenue Administration
Alberta Treasury Board and Finance
9811 109 Street NW
Edmonton, Alberta  T5K 2L5

Fax: 780-427-0348

To connect with Tax and Revenue Administration

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-427-3044
Toll free: 310-0000 before the phone number (in Alberta)
Email: tra.revenue@gov.ab.ca

Related

Other programs administered by Tax and Revenue Administration

Tax and levy rates and prescribed interest rates

Fuel Tax Act and Regulations

Tobacco Tax Act and Regulations

Climate Leadership Act and Regulation