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Canmore's 'livability tax' survives court challenge amid housing crisis

A divisive tax on vacant properties just got the green light—will it fix Canmore's housing squeeze or punish seasonal owners? The debate rages on.

The image shows a city street with tall buildings in the background, vehicles on the road, people...
The image shows a city street with tall buildings in the background, vehicles on the road, people walking on the footpath, a bicycle, a hydrant, and boards with text on them. The sky is filled with clouds, and the text on the boards reads "Rental Homes for Rent, listingid 29058910, location 5901 S Elmwood Avenue Toronto 07040".

Canmore's 'livability tax' survives court challenge amid housing crisis

Canmore's controversial 'livability tax' has been upheld after the Alberta Court of Appeal rejected a challenge against it. The measure aims to push more homeowners into full-time residency, tackling the town's persistent housing shortage. With nearly a quarter of properties sitting empty for much of the year, the tax has sparked heated debate among locals.

The tax will apply to homeowners who leave their properties vacant for over six months annually. To avoid the charge, a residence must be occupied for at least half the year, including a continuous two-month period. The average part-time owner will face an extra bill of more than £6,300 per year—nearly triple the £2,100 paid by full-time residents.

Canmore's housing market has seen prices soar, with the median single-family home now valued at over £1 million. The town follows the lead of British Columbia and Toronto, which introduced similar vacant home taxes in 2018 and 2020. Since then, at least 12 other Canadian cities—including Vancouver, Victoria, and Edmonton—have adopted comparable measures to curb empty properties and ease housing shortages. Supporters argue the tax will free up homes for year-round residents. Opponents, however, see it as an unfair burden on seasonal owners who contribute to the local economy.

The court's decision means the tax will now move forward, affecting thousands of part-time homeowners. Those who fail to meet the occupancy rules will pay significantly more in annual taxes. The policy's success in increasing full-time residency will likely be closely watched by other communities facing similar housing pressures.

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