The Town of Canmore is pushing ahead with its livability tax after the Alberta government introduced proposed legislation that would protect Alberta residents from being taxed at a higher rate on properties they occupy for less than half the year.
Mayor Sean Krausert confirmed Thursday that the town intends to proceed with its livability tax bylaw this year, following the province's introduction of Bill 28 by Municipal Affairs Minister Dan Williams — a wide-ranging piece of legislation that includes protections for Alberta property owners against vacancy-style taxes.
"After taking steps to ensure our bylaw aligns with the requirement to exempt Albertan owners of non-primary residences, the Town of Canmore will be proceeding with the Livability Tax this year. This represents a significant step forward in dealing with our community's severe housing crisis." — Mayor Sean Krausert
Krausert said the expected provincial amendment had been anticipated following earlier discussions with Minister Williams, and that the legislation effectively allows Canmore to proceed with a more targeted version of its original tax plan — one that will now carve out exemptions for Alberta residents who own secondary or recreational properties in the mountain town.
What Bill 28 Would Do
Bill 28, tabled in the legislature Thursday, packages together a series of changes aimed at accelerating home construction, reinforcing essential services, and establishing clearer accountability standards for local governments. Among its provisions is an amendment that would prevent municipalities from imposing vacancy-style levies that effectively penalise homeowners based on how frequently they occupy their property.
Minister Williams framed the change as a matter of fairness for Albertans who own property across the province.
"For Albertans, a home should be taxed like a home no matter where it's located or how often they occupy it." — Municipal Affairs Minister Dan Williams
Canmore's Housing Pressure
Canmore has long grappled with one of the most acute housing affordability crises in Alberta. The picturesque mountain community, wedged between Banff National Park and the Bow Valley, has seen property values soar as demand from recreational buyers and short-term rental investors competes directly with the needs of full-time residents and essential workers.
Town officials have argued that a livability tax targeting properties left vacant or underused for most of the year could help bring more housing supply into the hands of permanent residents and ease pressure on local renters and workers who cannot compete with the recreational property market.
With the provincial exemption framework now proposed through Bill 28, Canmore's bylaw will apply more narrowly — focusing on out-of-province owners and investors rather than Albertans with secondary residences in the area.
The legislation has yet to receive final approval in the legislature. If passed, it would set the legal foundation for municipalities like Canmore to implement housing-focused tax tools within the new provincial guidelines.
Source: Calgary Herald. Original reporting by Devon Dekuyper.