The Town of Canmore council has approved an amended budget of $4.4 million for the 2026 Livability Tax Program, a move designed to generate revenue to address the ongoing housing affordability crisis in the community. The decision, made on May 12, 2026, follows proposed provincial legislation (Bill 28) that would require municipalities to exempt Alberta residents from higher tax rates applied to non-primary residences.
The program, which aims to support the development of approximately 2,000 new non-market homes by 2031 according to a 2024 Bow Valley Regional Housing report, will now apply a tax rate of 0.4% on the assessed value of non-primary residential properties owned by people living outside of Alberta. Approximately 786 properties are expected to be subject to this tax. The council previously approved a budget of $10.3 million, but that figure was reduced following the introduction of Bill 28, provincial legislation that would limit how such taxes can be applied to properties owned by residents of the province.
Mayor Sean Krausert has been a vocal supporter of the initiative, describing the current state of housing in the town as an existential threat to its future sustainability. With about 25% of homes in the community owned by part-time residents and a residential vacancy rate of 0.9%, the town has looked to the Canmore Community Housing organization to help lead affordability efforts. Funds collected through the program are earmarked to support local housing projects, including the YWCA Banff Moustache Lands development.
The path to implementing this tax has involved significant legal review. In March 2026, the Court of Appeal of Alberta fully dismissed a challenge in the case of Ross v. Canmore, confirming the town’s authority to move forward with the program. While the scope of the tax has been altered by proposed provincial legislation, the town is now proceeding with the $4.4 million budget to help meet its long-term housing goals.
