Canmore town council has instructed staff to review potential adjustments to its vacancy tax that would impact its scope and revenue collection markedly.
Currently, second homeowners in Canmore who do not reside in or rent out their property for at least half of the year are required to pay a tax equivalent to 0.4% of the property’s assessed value.
Following a unanimous decision at the recent town council meeting, staff has been tasked with exploring the implications of excluding Alberta-based second homeowners from the tax requirement. Only non-resident homeowners would remain subject to the tax.
Mayor Sean Krausert emphasized the importance of addressing the needs of Canmore residents over the specific mechanisms used to meet those needs. He sees the proposed change as a way to sustain the program while focusing on securing funding for non-market housing initiatives in Canmore.
Premier Danielle Smith’s directive to Municipal Affairs Minister Dan Williams to shield Albertans from specialized taxes prompted discussions between Canmore and the provincial government. Mayor Krausert noted that the proposed alteration stems from these negotiations, with anticipated amendments to Alberta’s Municipal Government Act in line with the provincial mandate.
Despite these developments, the future of the livability tax and any associated amendments remains uncertain until the legislative changes are formalized by the province.
The livability tax has stirred controversy in Canmore since its introduction, leading to legal challenges and opposition from a group of secondary homeowners. The tax was initially established to support non-market housing for local workers, aiming to generate around $10.3 million annually.
Mayor Krausert highlighted the escalating housing costs in Canmore, making non-market housing crucial for long-term affordability in the community. Data from the province indicates that Canmore’s housing market ranks among the most expensive in Alberta, surpassing prices in Edmonton and Calgary significantly.
Some councillors expressed concerns about the viability of the tax post-amendment and its impact on the community. They recognized the proposed changes could alter the tax’s original intent and outcomes but supported the motion as a means of gathering information.
Despite potential funding reductions for non-market housing, Mayor Krausert remains optimistic about the program’s value. He acknowledged the funding gap resulting from the tax adjustment and pledged to collaborate with Minister Williams on alternative funding solutions.
While acknowledging potential frustrations from out-of-province homeowners, Mayor Krausert underscored the town’s commitment to prioritizing housing for Canmore’s permanent residents, citing the significant housing insecurity among this population.
Administrators are slated to present potential amendments to the council in the coming months for further deliberation.