Owners of secondary residences in the mountain town of Canmore have escalated their legal fight against a local municipal levy, filing an appeal with one of Alberta's highest courts. The dispute centers on the town's so-called livability tax, which is formally known as a vacancy tax.
The Core of the Legal Dispute
The group of second homeowners formally brought their case before the Alberta Court of Appeal on December 15, 2025. This legal action represents a significant pushback against the town's policy, which was designed to address housing availability and community vitality by imposing a financial charge on properties that are not primary residences or are left vacant for extended periods.
While the specific arguments presented in the appeal documents are part of the court record, the challenge fundamentally questions the town's authority and methodology in implementing such a tax. Property owners contesting the levy argue it places an unfair burden on those who own vacation homes or investment properties in the popular Rocky Mountain destination.
Municipal Goals Versus Property Rights
The Town of Canmore introduced the livability tax as a tool to manage housing pressures and encourage full-time residency. Municipal leaders have framed it as a measure to improve community cohesion and ensure housing stock is utilized effectively, rather than sitting empty for much of the year.
However, the appealing homeowners see it differently. Their court challenge highlights the tension between municipal policy objectives and individual property rights. The outcome of this appeal could set a precedent for other Canadian municipalities, particularly in tourist destinations, that are considering similar taxes to manage housing crises and community composition.
Potential Implications and Next Steps
The decision from the Alberta Court of Appeal will be closely watched by municipal governments, real estate professionals, and property owners across the province and beyond. A ruling in favor of the homeowners could force Canmore to rescind the tax or significantly redesign it, potentially impacting the town's budget and housing strategy.
Conversely, a ruling upholding the tax would empower Canmore and signal to other towns that such measures can withstand legal scrutiny. The court's deliberation process will now determine the next chapter in this ongoing conflict between a municipality's vision for livability and the rights of secondary property owners.
No date for a hearing or decision has been announced yet. The case continues to develop as both sides prepare their arguments for the appellate judges.
