Canmore's new tax on vacant homes sparks debate over affordability and community values

Background and implementation of the Liveability Tax

The Liveability Tax imposes higher property tax rates on homes that are not used as primary residences. According to the 2021 federal census, approximately 26% of homes in Canmore are not occupied by permanent residents. The new tax aims to incentivize property owners to either occupy their homes or make them available for long-term rental, thereby increasing the supply of housing for local residents

Exemptions to the tax are available for situations such as medical reasons, death, catastrophic events or permitted repairs that prevent occupancy. Mayor Sean Krausert emphasized that the policy provides property owners with the choice to use their property for permanent residency or face the higher tax rate, last year telling Rocky Mountain Outlook that, "It ultimately comes down to a choice of use for your property. If you choose to use it for a primary residence for yourself or someone else, you get the benefits of it. If you choose not to, there’ll be an extra cost."

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Community response and legal challenges

The implementation of the Liveability Tax has sparked significant debate within Canmore. A grassroots group, Fair Future Canmore, has filed for a judicial review against the Town of Canmore, arguing that the tax disproportionately targets part-time homeowners and fails to address the root causes of housing affordability issues.

Les Skingle, a steering committee member of Fair Future Canmore, criticized the policy, telling GlobeNewswire earlier this year, "The Vacancy Tax is not a solution to Canmore’s housing affordability crisis. It fails to address the root issues, such as increasing housing supply or supporting affordable developments, and instead places an unfair burden on certain property owners."

Even the town's former mayor has weighed in. Ron Casey, mayor of Canmore for 11 years in the late '90s and early 2000s told the Canadian Press this week that he had considered a similar tax back in his tenure, but had concerns over oversight of how the money would be spent. “There’s nothing that ties this, so what prevents this from being a yearly tax grab by the municipality?” Casey said. “That’s (homeowners’) fear. No one that I talk to has any objection to paying their fair share.”

Opponents of the tax also point to studies from other jurisdictions, such as Vancouver, where vacancy taxes have had minimal impact on housing affordability. The CD Howe Institute's report on Vancouver's Empty Homes Tax revealed only modest gains in rental availability and no significant reductions in housing costs.

Broader implications for housing policy

The controversy surrounding Canmore's Liveability Tax highlights broader challenges in addressing housing affordability in desirable communities. While vacancy taxes are one tool municipalities can use to encourage property owners to make their homes available for long-term rental or sale, they are not a panacea. Experts argue that more comprehensive solutions are needed, such as increasing the supply of affordable housing, implementing rent controls and providing incentives for developers to build affordable units.

In Canmore, the median assessed value of a single-detached home has risen to $1.383 million, up from $772,000 in 2021. This sharp increase underscores the urgent need for effective housing policies that balance the interests of property owners with the needs of the local community.

As Canmore moves forward with the Liveability Tax, the community remains divided. While some see it as a necessary step toward ensuring that housing remains accessible for local residents, others view it as an overreach that unfairly penalizes property owners. The outcome of the judicial review and the effectiveness of the policy will likely have implications for other municipalities grappling with similar housing challenges.

Sources

1. Rocky Mountain Outlook: Canmore reopening door on vacant homes issue (June 24, 2025)

2. Canadian Press: Judicial Filing Signals Serious Opposition to Canmore’s 'Liveability' Tax (January 29, 2025)

3. Calgary Herald: New tax targeting empty homes in Canmore stirs divisions in Alberta mountain town (May 2, 2025)

4. St. Albert Gazette: Alberta resort town's Median assessed residential home price tops $1 million (April 19, 2024)