Developers want Alberta government to intervene on Canmore vacancy tax

Mt. Rundle rises behind homes being constructed in Canmore, Alta., in April 2023. An Alberta property developer association wants the province to review Canmore's vacant home tax. (The Canadian Press/Jeff McIntosh)

The Building Industry and Land Development (BILD) Alberta Association is asking the Government of Alberta to review Canmore’s vacancy tax bylaw, citing concerns about the precedent it would establish, according to the provincial lobbying registry.

The Town of Canmore passed a bylaw in August 2024 that divided residential properties into five sub-classes and allows the administration to set different tax rates for primary residences, tourist homes and vacant properties.

This is the first time a municipality has used its power to establish a higher tax bracket for vacant homes. In April, a Court of King’s Bench judge ruled the bylaw was valid after it was challenged by a group of individuals and real estate management companies.

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Located about 20 minutes east of Banff National Park, Canmore’s housing crisis is very different from other Alberta municipalities, and the administration required an equally unique solution, according to Mayor Sean Krausert.

“Like many mountain destinations before us, our limited footprint combined with global desirability leads to housing prices that are out of reach of the average person, and certainly beyond the means of many people who will need to make a living in the community,” Krausert told the IJF.

The town has estimated that about 26 per cent of properties in Canmore are second homes that are not occupied by full-time residents. It’s aiming to collect $12 million from these vacant properties through the Livability Tax Program. All revenue from the additional tax will be used to support the development of 2,000 non-market housing units.

BILD Alberta is also lobbying the province for “clearer definitions of municipal taxation authorities” and to consider intervention if a municipality’s use of its powers “deviates from their intended purpose.”

Krausert said the province encourages municipalities to address their own respective issues where possible, and that “given the great need and unique circumstances in Canmore, which will not be satisfied in another manner, I have significant concern with potential intervention by the province on our Livability Tax Program.”

BILD Alberta did not respond to a request for comment by the time of publication.