Will luxury homes in Edmonton, Alberta see property tax added?

Every week, Mansion Global poses a tax question to real estate tax lawyers. Here is this week’s question.

Q. How would the proposed “home tax” in Edmonton, Alberta work?

A. A progressive tax on luxury homes was proposed last month in Edmonton, the capital of the Canadian province of Alberta.

The so-called Mansions Tax proposal is in its infancy, presented by Edmonton City Council member Michael Janz. He called on the municipal administration to prepare a report to add new levels of taxation to the existing regime.

The report would consider options for a subset of taxes on residential properties valued at more than C$2 million (US$1.5 million) and “that the additional revenue, if realized, be allocated to community safety and well-being initiatives and the eradication of poverty,” according to The Proposal.

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“To date, we have not had progressive taxation at City Hall… A progressive property tax – a tax on mansions – would reduce wealth inequality and ensure that the wealthy pay their fair share” , Mr. Janz said in a statement.

For now, more research is needed on how to implement the tax, whether it’s an increase in the rate per mill or another way to tax properties valued at more than 2 million Canadian dollars. Questions posed to Mr. Janz at the initial council meeting on June 10 centered on whether elderly residents whose property values ​​have skyrocketed over the time they own the home would be charged the same title as the new owners.

In the process of gathering information, the administration will be looking at other municipalities in Alberta, they said at the meeting. A report should be available by September.

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Penny D. Jackson