Table of contents

Status: The Tax Statutes Amendment Act, 2023, received royal assent on December 7, 2023
Ministry responsible: Treasury Board and Finance

Overview

The Tax Statutes Amendment Act, 2023, (formerly Bill 4) amends Alberta’s tax laws to ensure they are clear, consistent and up to date.

The Tax Statutes Amendment Act, 2023, legislates the extension of the fuel tax pause, provides clarity around the collection and remittance of Alberta’s tourism levy, helps to maintain provincial policy and ensures alignment with federal legislation.

A well-functioning tax system maintains Alberta’s low-tax environment, minimizes red tape, and plays a key role in attracting investment and new residents to the province.

Key changes

The Tax Statutes Amendment Act, 2023, updates the following legislation:

  • Fuel Tax Act

    • Legislates the extension of the provincial fuel tax pause to Dec. 31, 2023.
  • Tourism Levy Act

    • Repeals changes that came into effect on July 1, 2023, requiring online brokers (Airbnb, Vrbo) to collect and remit the tourism levy, with the changes repealed retroactive to that date.
    • Implements a new framework to require online brokers to collect the tourism levy as announced in Budget 2022, with specific details on requirements for collection and remittance to follow in regulation.
    • Updates information-sharing requirements to ensure temporary accommodation providers understand their tourism levy-related obligations, and to require online brokers to provide information to the Minister to ensure the new rules can be effectively administered.
  • Alberta Personal Income Tax Act

    • Updates calculation for the recovery tax on qualified disability trusts to correct an inconsistency between provincial and federal tax legislation.
    • Adds reference to the Income Tax Act (Canada) to ensure that trusts are defined properly throughout the Alberta Personal Income Tax Act.
    • Changes the eligibility requirements for the provincial disability tax credit, to align with changes to the federal credit.
    • Aligns with federal legislation to ensure that the Alberta calculation for tax on split income (TOSI) properly accounts for the disability tax credit.
  • Alberta Corporate Tax Act

    • Legislates a rule respecting Alberta’s application of a measure announced in the 2021 federal budget that allows eligible businesses to immediately deduct up to $1.5 million of the cost of eligible investments, rather than expensing them over several years.
    • Corrects the formula for calculating the Innovation Employment Grant (IEG) benefit for corporations that are associated with others.
    • Makes several technical amendments to respond to recent changes to federal tax legislation.

Next steps

The Tax Statutes Amendment Act, 2023, will take effect on various dates.

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