The Alberta Court of Appeal has rejected an appeal of the Town of Canmore’s “livability tax.”

The levy is aimed at taxing homeowners who leave their residences empty for more than half the year as part of the Alberta community’s bid to encourage full-time occupancy and address its housing shortage.

The proposed Livability Tax Program has been a divisive subject in the mountain community, west of Calgary, but the town said it’s necessary because it has become one of the most expensive places to live in Canada.

Several part-time owners argued it’s unfairly punishing faithful property taxpayers while others say the growing number of weekenders and vacationers has hollowed out Canmore’s community feel.

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Canmore housing crisis leads to debate over employees living in industrial areas.

The tax will charge the average part-time homeowner more than $6,300 a year, while full-time residents will pay about $2,100 annually in property taxes.

To avoid the tax, a home will need to be occupied by owners or renters for half a year, of which two months are continuous.

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British Columbia and Toronto have implemented similar vacant home taxes in recent years.

The median assessed value for a single-family home in Canmore was more than $1 million in 2024, and about a quarter of Canmore homes are owned by part-time residents, according to the town.

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Frustration persists over two contentious Canmore developments