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Tourist Home? Residential Use? What Canmore Property Owners Need to Know About Recent Land Use Changes: Understanding Canmore's Evolving Land Use Designation for Tourist Accommodations

In Canmore, we often refer to "zoning" when talking about how a property can be used — but technically, that's not the correct term here. The Town of Canmore uses land use designations under its Land Use Bylaw (LUB), which carry the same purpose: regulating what kind of development and activity is permitted on a property. So while “zoning” isn’t official terminology, it’s commonly used in real estate and by the public because it gets the point across.

One designation that’s been under increasing scrutiny is Tourist Home, which allows a dwelling unit to be used for both full-time living and short-term rental (e.g., Airbnb or VRBO). This hybrid use is rare — and valuable — but recent changes to the Land Use Bylaw and taxation structure are poised to significantly reshape how these properties are used and valued.

So, What’s Changing?

Over the past year, the Town has made a clear policy shift to discourage short-term rentals in residential areas. Key changes include:

  • Tourist Homes will no longer be allowed as a permitted use going forward, meaning no new Tourist Home properties will be approved. Existing ones will be “legally non-conforming,” meaning you can keep operating — but if you stop renting it short-term for six consecutive months, you lose the right.

  • All Tourist Homes will now be taxed at the non-residential rate, regardless of how the owner personally uses the home. Previously, owners could self-declare personal use and pay the lower residential rate. That subclass has now been eliminated.

  • You can voluntarily convert your Tourist Home to residential, and the Town has waived the rezoning application fees (until December 31, 2026). But — and this is important — this decision is irreversible. Once a Tourist Home is converted to residential, it cannot be converted back.

What If You Use Your Tourist Home as a Full-Time Residence?

If you own a Tourist Home but don’t actually rent it out short-term — maybe you live there full-time or rent to a long-term tenant — this change presents a tough choice.

On paper, converting it to a residential designation saves you money on your property tax bill (since non-residential mill rates are about 3x higher). But here's the trade-off: you’ll almost certainly lose resale value.

Tourist zoned homes in Canmore typically sell for 20–30% more than comparable residential properties, simply because of that short-term rental flexibility. That’s a huge premium. If you bought when the market had already priced in that flexibility (and especially if you paid peak market rates), giving up that designation could actually put you underwater if you ever need to sell.

It’s a personal choice:

  • Save thousands each year in taxes but risk tens (or hundreds) of thousands in equity

  • Or pay the higher tax rate and preserve the property’s full market value

Some owners might find a balance by keeping the Tourist designation but renting out their unit during personal vacations or shoulder seasons to offset the tax hit. That was, after all, the original spirit of the designation — not full-time Airbnb hotelization, but part-time flexible use. The rise of online booking platforms changed the game, but the core model still works.

Opinion: This Isn’t Going to Help Local Housing Inventory

Let’s call a spade a spade — I don’t believe this policy change will result in more long-term housing options for locals.  And I don’t think it’s going to bring down housing prices, even for this one segment of the market.

Why? Because:

  • The value of these properties is in the Tourist designation.

  • Removing the residential tax subclass removes the incentive to use it long-term.

  • Most owners who bought these units as investments won’t willingly devalue them by 20–30% just to save on taxes.

If anything, this change may prompt the opposite effect: owners who were using the property residentially or renting to long-term tenants may now pivot to short-term rentals to justify the higher tax bill. Those tenants could be displaced.

And from a market economics perspective, here’s the kicker: supply of Tourist Homes is now capped. Aside from a limited number in already-approved ASPs like Three Sisters, we won’t see new Tourist Homes in the future. But demand for them isn’t going anywhere. That scarcity will only drive their value higher over time — further incentivizing owners to hold onto the designation, not give it up.

I appreciate that the Town wants more transparency and planning clarity. And yes, for the small number of owners who truly just want to live in the unit and never rent it, this might feel like an easy win. But from where I stand? It feels like a well-intentioned move that could backfire — and actually reduce available long-term housing.

In Summary

If you own a Tourist Home in Canmore, now’s the time to reassess your strategy. Talk to your accountant & a local REALTOR® who understands the nuances of our market (👋), and weigh your long-term goals carefully.

Questions? Curious what your home’s designation means for value? Happy to chat anytime.

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Canmore's New Livability Tax Program: What Property Owners Need to Know by December 31, 2024

With the Town of Canmore rolling out the new Livability Tax Program, there's a big change coming in 2025 for local property taxes. This program is an effort to address our town’s housing crunch by funding more affordability initiatives, like land purchases for affordable housing or improvements to support new developments. Love it or hate it, the program has stirred up some opinions—but most agree that something has to give if we want to keep our local workforce living in town.

The Basics of the Livability Tax Program

Here's the gist: If your Canmore property isn’t lived in full-time, you’ll see an increase in your municipal property tax bill. But for full-time residents, there’s no change in your rate, as long as you declare your property as a primary residence. The funds from this additional tax revenue on non-primary residences will go towards much-needed housing initiatives.

The Town hasn’t set the exact premium rate yet, and they haven’t released an estimated range for what non-primary owners might pay, rumors are 0.1-0.4% but that’s very much just hearsay at this point. It’s something to keep an eye on, as details are expected to be shared closer to when the program fully rolls out. For now, all property owners need to focus on completing their declarations to avoid any unexpected charges if they qualify for the primary residence tax rate.

The clock is ticking! To get your primary residence status, you’ll need to declare by December 31, 2024. So, let’s dive into what you need to know and how to get started.

Primary Residence or Not?

So, does your property qualify? To be considered a primary residence:

  • A resident (either an owner or a renter) must live on the property for at least 183 cumulative days in a calendar year.

  • Of those 183 days, at least 60 must be continuous (but don’t worry, weekend getaways are allowed). This rule is simply in place to ensure the home is genuinely a primary residence, not a short-term rental.

Some properties are automatically categorized as primary residences, like apartment buildings, employee housing, and certain individually titled parking stalls and storage units, so if you own one of these, you’re set.

But if your property doesn’t qualify as a full-time residence (like a tourist home), or if you just can’t meet those occupancy requirements, expect to pay a bit more next year.

Exemptions to the Full-Time Residency Requirement

There are a few situations where you might be eligible for an exemption. Even if your property wasn’t occupied full-time due to certain events, you’ll still need to make a declaration if any of the following apply:

  • The owner was hospitalized, in long-term care, or, sadly, has passed away.

  • Major renovations, a catastrophic event, or a legally enforced prohibition meant the property couldn’t be lived in.

  • Or if the property was sold to a third party.

These cases won’t be subject to the higher tax, as long as the declaration is submitted.

How to Make Your Declaration Before December 31

The good news? You should have received a notice in the mail with your Tax Roll number and Access Code, if you don’t have them - go check your mailbox and if it’s still not there, email houseingaction@canmore.ca.  Once you have the access code, the declaration is now open and available on the Town’s website here. Simply complete it by December 31 to qualify for the primary residential tax subclass. Missing the deadline will mean your property is automatically taxed at the higher non-primary residence rate, which could make for an unpleasant surprise when your 2025 bill arrives.

Key Points and Consequences

Declaring your property’s status isn’t optional; it’s required under the Municipal Government Act. Ignoring the deadline will result in your property being taxed at the higher rate, and you’ll also lose your right to appeal the tax assessment in 2025.

The Town will be auditing declarations, so be sure to provide accurate information. False declarations could mean fines of up to $10,000, in addition to having to pay the avoided taxes and penalties.

Why This Matters for Canmore

This program might be a controversial addition, but it's hard to ignore the housing shortage impacting our workforce and community as a whole. With property prices continually on the rise, more people are finding it challenging to live where they work. Funding from the Livability Tax Program could make a real difference in supporting affordable housing and infrastructure that will, hopefully, relieve some of this pressure.

So, whether you’re here year-round or own a vacation spot in Canmore, this new tax program is something you’ll want to stay informed on. And for full-timers, take a few minutes to make your declaration online. It's a small step in making sure that your tax rate remains stable and that we continue building a livable, accessible community for everyone who calls Canmore home.

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