The Ontario government has announced its proposed tourist tax credit.
Anyone planning a getaway to the province in the 2022 tax year may be eligible for the new “Ontario Tourist Tax Credit” program.
The program was announced as part of the Ford government’s Fall Economic Statement, which was tabled Thursday.
Ontarians would get a 20% personal tax credit on qualifying housing between January 1 and December 31, up to a maximum of $ 1,000 for an individual and $ 2,000 for a family, for a maximum credit of $ 200 or $ 400 respectively.
Residents of Ontario could claim this refundable credit when they file and benefit from their 2022 personal income tax return, even though they owe no tax.
According to the government, an eligible accommodation expense should be:
For a stay of less than a month in eligible accommodation such as a hotel, motel, resort, bed and breakfast, bed and breakfast, cabin or campground in Ontario
For a stay between January 1 and December 31, 2022
Encouraged for recreation
Paid by the Ontario filer, their spouse or common-law partner, or their eligible child, as shown on an itemized receipt
Not reimbursed to the declarant, his or her spouse or common-law partner, or his eligible child, by any person, including a friend or an employer
Subject to Goods and Services Tax (GST) / Harmonized Sales Tax (HST), as shown on itemized receipt.
The government has said this tax credit will help the tourism and hospitality sectors turn around and encourage Ontarians to explore the province.
The credit would provide about $ 270 million to help more than 1.5 million families discover more of Ontario, the government said.
Ontario NDP Leader Andrea Horwath said Thursday she believed the stay credit would not help families and that there should have been a full refund of $ 1,000 on fees spent on vacation in the province.
“That thing that’s in today’s update – around $ 200 is what that gives – it’s really not going to help families much,” Horwath said. “This is why our idea of the $ 1,000 tax credit could be of use to some families who would normally have taken the vacation right now.”