N.S. commits to fix for municipalities waiting on marketing levies from booking platforms

The provincial government of Nova Scotia has made a commitment to help municipalities in the region with the challenge of collecting and remitting fees from online booking platforms like Airbnb or Vrbo. Many cities, towns, and districts in Nova Scotia have implemented marketing levies of up to three percent on accommodation prices for short-term stays at hotels, rentals, or cottages.

Since April 2024, online platforms have been required by law to collect these levies from guests and send them to the local municipality. However, this process has proven to be more complex than anticipated. Donna Hatt, the economic development officer for the Town of Bridgewater, explained that it has been a lot of work to establish relationships with these platforms, especially those based overseas. Despite most platforms being cooperative, they have expressed concerns about dealing with multiple municipalities each with their own set of rules.

Carolyn Penny, senior financial consultant for the Halifax Regional Municipality, noted that Halifax has been successful in receiving levies from platforms like Airbnb due to its large number of listings. Halifax received $10 million in marketing levies from operators between May 2024 and May 2025, with a significant portion coming from platforms like Airbnb.

In response to the challenges faced by municipalities, Municipal Affairs Minister John Lohr has promised to find a third party to serve as a single point of access between municipalities and online booking platforms. The government is currently in the early stages of finding this third party, with no set timeline for implementation.

The District of Chester, which includes the popular Village of Chester, is eager for this solution to be in place before their levy kicks in on January 1, 2026. With over 200 short-term rental properties in the district, they anticipate significant revenue from the levy. A provincial portal would ensure full compliance and streamline the collection process.

Having a third party manage the levies would also allow for better auditing of funds, which is currently a challenge for many municipalities. Kelsey Hicks, finance manager for Bridgewater, emphasized the importance of ensuring that all entities are compliant with the levy requirements.

Both the District of Chester and Bridgewater plan to work with local businesses and tourism organizations to determine how the levy funds will be spent. With the support of the provincial government in finding a solution for collecting and remitting fees from online booking platforms, municipalities in Nova Scotia can look forward to a more streamlined process and increased revenue for tourism projects and events.