In a significant policy shift, the Town of Canmore has decided to narrow the scope of its recently implemented vacancy tax, now targeting only property owners who are not residents of Alberta. The move comes after discussions with the provincial government, which signaled plans to legislate against such municipal levies.
Provincial Pressure Forces a Rethink
Mayor Sean Krausert presented the motion to council on Tuesday, January 6, 2026, following concerted opposition and direct talks with Municipal Affairs Minister Dan Williams last summer. Minister Williams indicated he was drafting legislation to counter municipal vacancy taxes, prompting Canmore to align its program preemptively.
"Legislation to change the Municipal Government Act to limit our program gave rise to this," Krausert stated. "We want to make sure there’s alignment, that we’re singing from the same song sheet. It allows the program to continue but limits its scope."
The Tax and the Housing Crisis That Inspired It
The town's so-called "livability tax" was originally passed in 2024 and took effect on January 1, 2026. It was designed to triple the municipal property tax levy for owners or renters who live in Canmore for fewer than 183 days a year, with at least 60 of those days being continuous.
Mayor Krausert defended the tax's original intent by pointing to the severe housing affordability crisis. He stated that exploding real estate values have driven the median condo price above $800,000 and family homes to $1.4 million. This, he argued, has created possibly the greatest financial inequality in Canada within the mountain community, leaving the town with no choice but to act.
Proponents argued the tax would encourage full-time residency and raise between $10 million and $12 million annually for affordable housing projects. For an average homeowner, it would have increased the yearly municipal tax bill from around $2,100 to $6,300.
Implications and Ongoing Battles
Krausert acknowledged that the amended tax, now exempting Albertans, will generate less revenue, though a precise figure is unknown as the number of affected non-Alberta owners is still being determined. The town plans to continue conversations with the province to seek alternative funding, possibly through grants, to fill the anticipated financial gap.
Council has directed town administration to craft the formal exemption, aiming to have it ready before the 2026 tax rate is set. Mayor Krausert will also send a letter to Minister Williams to discuss securing alternative revenue and invite him to meet with council.
The tax has faced legal challenges from the outset. In April 2025, the Court of King's Bench rejected an appeal by opponents but ordered the town to delay implementation until 2026. The opposition group, Fair Future Canmore, which boasts about 1,000 members, has labeled the policy a discriminatory tax grab and is appealing that ruling. The group did not immediately comment on the latest amendment.
