Canmore’s town council has instructed staff to investigate modifications to its vacancy tax that would have a significant impact on its scope and revenue. Presently, the tax requires owners of second homes who do not reside in or rent out their property for at least half of the year to pay a tax equivalent to 0.4% of the home’s assessed value.
Following a unanimous decision at the recent town council meeting, staff were tasked with examining the implications of exempting second homeowners based in Alberta from the tax, with only out-of-province owners remaining liable.
Mayor Sean Krausert emphasized the importance of addressing Canmore residents’ needs over the specific mechanisms used to meet those requirements. He expressed support for a potential solution that allows the program to continue in some form while emphasizing the importance of securing funding for non-market housing in Canmore.
In response to a directive from Premier Danielle Smith to protect Albertans from specialized taxes, Municipal Affairs Minister Dan Williams was tasked with ensuring compliance. This directive raised uncertainties about the future of Canmore’s original tax plan, leading to negotiations between the town and the province. The proposed changes stem from these discussions, with the provincial government expected to amend Alberta’s Municipal Government Act to align with the mandate letter’s directives.
Despite these developments, the future of the livability tax and any potential amendments remains uncertain until the legislative changes are enacted by the province. The tax has been a contentious issue in Canmore, prompting legal challenges and opposition from a group of secondary homeowners.
The tax was initially introduced to support non-market housing for local workers, aiming to generate approximately $10.3 million annually. Mayor Krausert highlighted the escalating housing costs in Canmore, emphasizing the critical role of non-market housing in maintaining long-term affordability.
Councillors have expressed concerns about the viability of the tax post-amendment, with some questioning its effectiveness. Despite potential funding reductions for non-market housing, Mayor Krausert believes the program remains valuable and intends to explore alternative funding sources to bridge the gap.
While acknowledging potential frustrations from out-of-province homeowners, Mayor Krausert reaffirmed the town’s commitment to addressing housing insecurity among its permanent residents. Administration is expected to present potential amendments to the council in the coming months for further review.