Canmore's Livability Tax Falls Nearly $1M Short as Declaration Rules Tighten

Canmore property owners who miss this year’s Dec. 31 primary residence declaration deadline could face a higher tax bill, with no extensions and limited options to correct their classification.

That’s the message from Town staff, who told council on Oct. 20 that the Livability Tax’s first year is expected to bring in nearly $1 million less than its revised budget.

The Livability Tax charges a higher property tax rate on certain homes that are not primary residences, with revenue intended to support affordable housing and other affordability initiatives.

Owners of most residential properties in Canmore, including those who live in their homes full time or rent to full-time tenants, must declare how their property is used to avoid the higher rate.

The declaration window opens Oct. 30.

“It’s really critically important that property owners do complete those declarations to make sure that they are placed in the right category and then they’re not inadvertently subject to the higher tax rate,” said Chelsey Gibbons, the Town’s manager of finance.

Why Canmore Had to Adjust 191 Livability Tax Bills

During the Livability Tax's first year, some Canmore property owners were charged the higher tax rate but later qualified to pay less.

As a result, the Town adjusted tax bills for 191 properties in 2026, after the original notices had already been sent out.

Those changes reduced the amount the Town expected to collect by nearly $1 million, according to Gibbons.

That leaves 667 properties paying the Livability Tax, according to Adam Robertson, the Town's manager of communications.

Most of the adjustments involved 162 properties whose owners missed the previous declaration deadline but later proved they were Alberta residents.

Under Bill 28, provincial legislation passed this spring, homes owned by Alberta residents are exempt from the higher tax. A temporary rule allowed Town staff to correct those bills without council approval.

Another 11 properties received the lower rate after being sold to Alberta residents during the year.

The remaining 18 were rented to full-time tenants, but their owners lived outside Alberta, meaning they didn't qualify for the exemption. Those owners had to ask council directly for tax relief.

Council refunded most of the Livability Tax on seven properties in June and another 11 on Oct. 6, keeping $500 from each to cover administrative costs.

A Shrinking Budget

Council had originally budgeted $10.3 million from the Livability Tax for 2026.

After Bill 28 exempted Alberta owners, council cut the figure to $4.4 million in May, a drop of $5.9 million.

Adjustments since then have reduced expected revenue by nearly another $1 million, leaving it below even the revised budget.

Council’s six-year plan for the money includes $10 million over four years, starting in 2027, for the YWCA’s Moustache Lands project, a proposed affordable housing development in Canmore.

Gibbons said the program will likely need “longer time frames” to deliver on those plans. Council’s finance committee begins budget talks in November.

Changes for 2027

Starting in 2027, a property sale will no longer trigger a midyear tax reassessment. That means the property's tax classification will generally remain unchanged for the year, even if it is sold to someone who would otherwise qualify for the lower rate.

Buyers and sellers will have to settle any tax differences between themselves when the sale closes.

Owners who miss the Dec. 31 declaration deadline will also lose the right to appeal their assessment based on a missed declaration. Their only option for seeking tax relief will be to ask council under section 347 of the Municipal Government Act (MGA).

Staff plan to propose a fee for those requests during fall budget talks “to cover the administrative costs of preparing for the necessary report and presentation to council,” Gibbons told council’s committee of the whole.

Gibbons said B.C. and Ontario municipalities can charge late-filing fees on their vacancy taxes because they operate under “fundamentally a different regime.”

Canmore’s program relies on property assessments, which are fixed as of Dec. 31. “We have to move forward with the information we have available at that time,” she said.

Some councillors questioned the approach. Coun. Tanya Foubert asked whether owners could update their status once a year, the way the Town adds newly built homes to the tax roll. Gibbons said that would still leave the program short of what it had budgeted

Foubert also asked why the change was not brought to council for a decision. Chief administrative officer Sally Caudill explained that it is not a decision for council because the rules are set out in the Municipal Government Act, the provincial law that governs municipalities.

“We see this as us following the MGA, and partially what we’re doing is letting council and the community know that there’s going to be a change,” said Caudill. “I don’t see this as a decision point for council. I see it as a MGA compliance issue.”

Coun. Jen Marran asked what happens to Alberta residents who miss the deadline, since the province bars the Town from charging Alberta residents the tax. Gibbons said they cannot correct their status “once the declaration is complete.” A request to council would be their only route.

A One-Year Exception

Mayor Sean Krausert said the program’s first year was the exception, not the rule.

“I think last year was an anomaly,” Krausert said, referring to the 2026 tax year. “There had to be some exceptions to make the transition, but now we’re just using the principles that taxes are set on as per the MGA.”

Gibbons described 2026 as “quite anomalous,” with the Town forced to reassess properties after tax rates were set and bills sent.

Caudill said the provincial rule that allowed those midyear changes applied to 2026 only and is “not replicable under the MGA as I understand it.”

Reassessing a property because it changes hands “would detract from the income that is needed and has already been budgeted,” Krausert said.

“Property ownership comes with responsibility,” he added.

The Town plans weekly ads and social media posts throughout the two-month declaration window, along with information for realtors and real estate lawyers. Declarations are due by 11:59 p.m. on Dec. 31.

Owners with questions can contact the Housing Action Team at [email protected] or 403-678-1594.