Canmore’s second homeowners have taken their ire for the town’s livability tax—also known as the vacancy tax—to the Alberta Court of Appeal. Starting in 2026, there will be a separate tax rate for people at their Canmore residences for fewer than 183 days. Someone must also be there for at least 60 continuous days. Ralph Young is one of six people on the application brought forward to the Alberta Court of Appeal. “The whole basis of property tax is that the taxes are to be fair and equitable,” said Young. Young, who lives in Edmonton, has owned his residence in Canmore since 1997 and says he spends at most five or six days a month in the mountain community. He will see his property tax increase by 0.4 per cent of the assessed value on the municipal portion of his tax bill. “It’s totally inequitable and unfair,” said Young. “A very dangerous precedent that the Town of Canmore is attempting to establish. “If you had pets in your home as opposed to having no pets, they could establish a different tax rate for that (or) they could establish a different tax rate for the number of people who live in the home at any time.” The Town of Canmore points to its housing crisis as the reason for the vacancy tax. Canmore has a vacancy rate of 0.9 per cent. “We are at a turning point to create a future that meets the needs of our community,” said Mayor Sean Krausert. “What we need are tools to address our housing challenges, and the livability tax program is the tool that we currently have at our disposal.” The town provides an example of what second homeowners will pay. The median assessed residential condo ($761,000) would pay the following rates as displayed under the municipal portion of your tax bill: Twenty-five per cent of homes are not occupied by a permanent resident, according to the town. The revenue collected from the livability tax program will go toward building 2,000 new non-market homes. Adam Zekry drives four times a week into Canmore from north of Cochrane for work. He lived in the community from 2013 to 2022. “I decided to leave Canmore; it was very unrealistic to expect to buy an affordable home and have space to live in the traditional way that, growing up in Canada, you kind of expect,” said Zekry. Zekry feels second homeowners can afford the additional tax but isn’t convinced it will solve the town’s housing issues. “It’s a way for the town to bring in revenue, and that’s about it,” said Zekry. “The idea of Canmore ever being an affordable place to live is long gone.” Applicants are expecting to hear back from the Alberta Court of Appeal within the first few months of the new year. In September, Premier Danielle Smith gave Municipal Affairs Minister Dan Williams a directive to protect Alberta from specialized municipal taxes. In a statement, Williams said, “Albertans shouldn’t be unfairly taxed, no matter where you live in the province.” “The premier and I have been clear, including in my mandate letter, that we will work with our municipal partners to find practical solutions that ensure Albertans see fair and predictable property taxes,” he said.
