Canmore town council has requested staff to investigate modifications to its vacancy tax that would impact who is responsible for paying it and the total revenue collected by the town.
Currently, owners of second homes in Canmore who do not reside in them or rent them out for at least half the year are required to pay a tax equivalent to 0.4% of the property’s assessed value.
Following a unanimous decision during the latest town council meeting, staff members have been tasked with examining the implications of having only out-of-province homeowners continue to pay the tax while Alberta-based second homeowners would be exempt.
Mayor Sean Krausert emphasized the importance of meeting the needs of Canmore residents rather than fixating on the specific mechanism used to address those needs. He expressed optimism about the potential adjustment to the tax, highlighting its positive impact on funding non-market housing for Canmore’s residents.
The proposed alteration to the tax stems from negotiations between the town and the province after Premier Danielle Smith directed Municipal Affairs Minister Dan Williams to shield Albertans from specialized taxes. The provincial government is anticipated to revise Alberta’s Municipal Government Act to align with the mandate letter, ensuring Canmore’s initiatives are in sync with forthcoming provincial legislative changes.
Despite the proposed changes, uncertainties loom over the future of the livability tax and any potential amendments until the province enacts legislative adjustments. The tax has been a contentious issue in Canmore, sparking legal challenges and opposition from a group of secondary homeowners.
Originally conceived to support non-market housing for local workers, the tax was projected to generate approximately $10.3 million annually. Mayor Krausert underscored the increasing unaffordability of housing in Canmore for average workers, highlighting non-market housing as a crucial tool to maintain long-term affordability in the community.
With concerns raised by some councillors about the viability of the tax after the proposed changes, discussions are ongoing about the potential impact on the tax’s intent and outcomes. Despite the anticipated reduction in funding for non-market housing, Mayor Krausert remains optimistic about the program’s continued relevance and is exploring alternative funding sources to bridge the financial gap.
The town anticipates receiving potential amendments from the administration in the coming months for further review by the council.
