In an effort to remove what some on council considered a discriminatory tax practice, Canmore politicians voted to change how some tourist homes are assessed.
Council has been debating the bylaw, which would create equity between permanent and non-permanent residents regarding taxation of tourist homes not being used for commercial purposes, for several months. In June, they voted to give the bylaw third reading, but not without some debate.
Councillor Jim Ridley proposed to postpone the matter until the end of October for administration to conduct a larger review of zoning classifications in the community.
“I don’t think there has been sufficient analysis done from a community planning perspective,” Ridley said. “I think there was a good purpose to establish tourist home zoning years ago. I think what we need to do is step back from our decision making tonight.
“If this was all about bringing equity and fairness to taxation, we would step back and look at the bigger picture and equalize the tax regime so everybody is treated equally.”
There was very little support from the rest of council, with Mayor John Borrowman pointing out there has already been a review of tourist home classification and “there is no need for a second motion to the same effect.”
Counc. Sean Krausert said council has a responsibility to address the issue as it relates to discrimination.
“In my mind, what has been identified here is a discrimination against a certain segment of our taxpayers and once one has identified a discrimination, to just allow it… is wrong, so I don’t think it is the sort of thing we can postpone,” Krausert said.
Coun. Joanna McCallum pointed out council has already put in motion a review of zoning throughout the community that will be a conversation happening in the spring.
“The bottom line is that this is the last piece of discrimination in taxation in the residential class that we have and I look forward to the debate in spring on taxation in general,” she said.
Coun. Vi Sandford was the only other voice of support for the motion to postpone, and voted against third reading with Ridley. She argued for more public consultation on the issue to understand it more completely.
Sandford said the higher tax rate for tourist homes is an incentive for owners to rent it out and contribute to the economy.
“Let’s not take away the incentive for using a tourist home for what it is meant for,” she said.
The bylaw allows non-permanent residents to make a statutory declaration that they do not rent out their tourist home zoned property and therefore receive a lower tax rate. Permanent residents of Canmore who own tourist home zoned properties were already allowed the opportunity to have the lower tax rate if it was being used as their permanent residence.
Tourist homes currently generate $881,000 in municipal property tax revenues. The financial effect of the bylaw is expected to range from nothing to around $600,000 in tax revenues that will need to be generated elsewhere.
