Royalty
Tremblant Resort Association
A royalty is a percentage applied to the price of all transactions involving goods and services on the Tremblant Resort. It allows the Tremblant Resort Association (TRA), a non-profit organization, to ensure that guests enjoy a unique and truly memorable experience, by offering top-notch entertainment, events and shows, the majority being free, as well as world-class services and facilities.
rich-text, responsive-table
- Please note that a royalty equivalent to 3.5% of the price advertised or payable for accommodation and to 3% of the listed or advertised price of the goods and services will be added to your invoice. This royalty corresponds to the percentage of contribution determined by the Tremblant Resort Association.
- The royalty is applied in accordance with TRA regulations and the Regulation respecting the application of the Consumer Protection Act (articles 91.6 and 91.7).
rich-text, responsive-table
-
Lodging
Purchase price
+ 3.5% royalty
_________________
Sub-total
+ 5% GST
+ 9.975% PST
_________________
Total rich-text, responsive-tableProducts and services
Purchase price
+ 3% royalty
_________________
Sub-total
+ 5% GST
+ 9.975% PST
_________________
Total rich-text, responsive-tableThe percentage of the federal and provincial taxes is shown as an example as it may be subject to changes.
rich-text, responsive-table -
The royalty represents an exceptional opportunity for Temblant Resort Association members to generate additional monies and is a means for financing important and strategic development and for ensuring the success of all of Tremblant.
Despite the concept of the royalty being unique to Quebec, it is widespread in North America throughout our industry, thereby contributing to the success of these resorts.
- The royalty collected on products and services (retail sales) is set at 3% of the pre-tax sales price.
- The royalty collected on accommodations is set 3,5% of the pre-tax sales price.
-
Must merchants absolutely list the royalty separately or do they have the choice of including it in their prices?
Yes, they must absolutely list the royalty separately. The TRA Board of Directors adopted a resolution to that effect: "... the royalty shall be listed on the bill for all taxable goods and services and it shall be applied identically by all merchants on the resort."If the government is exempt from the royalty, what about products purchased at the Société des alcools du Québec (SAQ)?
Such goods and services are exempt from the royalty.Are tips, when listed on the bill, subject to the royalty (as it is with taxes)?
Tips are exempt, unless listed on the bill, as they normally are for group packages. Only in such cases are they subject to the royalty, similarly to federal and provincial taxes.Which other resorts in North America apply a royalty and what are the percentages?
The following resorts all apply a royalty ranging from 2% to 6% on goods and services and/or on accommodation: Banff (Canada), Whistler (Canada), Beaver Creek (Colorado), Breckenridge (Colorado), Copper Mountain (Colorado), Disney World (Florida), Keystone (Colorado) and Snowmass (Colorado).Are employees working for the government or an embassy exempt from the royalty, since they don’t pay federal or provincial taxes?
Firstly, they do pay taxes. In fact, for the past several years, they have had to pay taxes and be reimbursed afterwards. As for the royalty, they must pay it but will not be reimbursed, since this is not a tax.Are SAQ products, which are exempt from the royalty, subject to it when sold by an intermediary (e.g.: a hotel concierge)?
Yes, they then become subject to the royalty, just as if these products were sold in a restaurant or a convenience store that is not a governmental body.May we leave the royalty included in the price (e.g. on a billboard) by posting that it is included in the listed or advertised prices, while listing it separately on the bill?
No. In order to avoid guest confusion, the application of the royalty shall be the same for all retailers – as stipulated by a resolution adopted by the TRA Board of Directors.When a member resells at a profit goods or services he purchased from another member, who pays the royalty on the profit generated?
The member who sells the goods or services initially must charge the royalty to the member who is the purchaser and remit it to the TRA The member who resells the goods and services to a guest at a higher price (administration fee, profit, etc.) must collect the royalty on the sales amount less the amount already subject to a royalty and remit to the TRA a royalty equal to the difference.When a member sells goods or services to another member (without selling them to a guest), does the first member need to collect the royalty?
No, since the royalty applies only to end-consumer goods and services (for guests).Are all goods and services purchased off-site but sold by a member to guests subject to the royalty?
Yes. When a member purchases goods and services off-site and resells them to a guest, he must add the royalty to the bill.Are all goods and services offered in a hotel subject to the royalty (e.g. telephone charges, laundry, concierge services, etc.)?
Yes, all goods and services offered in a hotel are subject to a 3% royalty.Are administration fees subject to the royalty?
Yes, administration fees are subject to the royalty since they represent a service.What goods and services offered on-site that are exempt from the royalty?
All non-taxable goods and services exempt from federal and provincial taxes (GST and PST) are exempt from the royalty. Therefore, the following goods and services are exempt from the royalty:
- All governmental goods and services (e.g. SAQ)
- All goods and services exempt from federal and provincial taxes (GST and PST), and supplies on which taxes have been removed, notably:
- Basic food products
- Financial services
- Daycare services (e.g: Kid'z Club)
Why are non-taxable goods not subject to the royalty? Why apply the same logic as if it were a tax when it is not?
Further to a recommendation from the Consumer Protection Bureau, the TRA Board of Directors adopted the following resolution: "Given that certain exclusions must be considered by the Board of Directors and that it must be stipulated clearly that retailers, which are likely to be exempted from the royalty, must necessarily be exempted from both federal and provincial taxes."