Edmonton’s tax on derelict homes prompts action from owners, inspires other municipalities
A new tax on derelict homes in central Edmonton has proven so successful that city councillors are now considering applying it to the rest of the city.
Last year, Edmonton became the first city in Canada to charge owners of dilapidated or unlivable homes in mature areas three times the residential tax rate.
The tax was designed to boost neighbourhood vibrancy and help offset the high costs of addressing the properties through inspections, bylaw enforcement and emergency services.
According to a report presented at city council’s executive committee meeting on Wednesday, the new tax appears to have encouraged owners to demolish, remediate or sell their derelict properties.
Of 202 properties originally assessed as derelict last year, 62 have either been demolished or remediated.
Between Nov. 1, 2023, and Oct. 31, 2024, about a quarter of derelict properties were sold.
The tax generated about $575,000 in additional revenue last year, but increased operating expenditures and tax forgiveness for remediated properties cost the city $391,000.
The report said council members and city officials heard from property owners who said the higher tax rate was a significant factor in motivating them to act on the properties sooner than they otherwise would have.
Residents have noticed positive changes in their neighbourhoods, Wednesday’s committee meeting heard.
“I’m hearing from community members in the neighbourhoods that I represent who are noticing a real difference and are grateful to see the city taking action on these properties that not only cost all Edmontonians but often pose a real safety risk to surrounding neighbours,” Ward Métis Coun. Ashley Salvador told the meeting.
Salvador, who has championed the issue, represents residents living in Alberta Avenue, McCauley and Eastwood — three neighbourhoods with 10 or more properties assessed as derelict last year.
Mayor Amarjeet Sohi and councillors on the committee decided to pursue applying the tax to derelict homes beyond central Edmonton and discussed possible ways of taxing other types of vacant properties in the future.
“I hear frequently, especially in the industrial areas, the vacant non-residential locations, issues around squatting and fire,” said Ward Karhiio Coun. Keren Tang.
The report said creating non-residential derelict subclasses would be trickier, but expanding the residential derelict subclass to all neighbourhoods would be feasible, potentially as early as the 2027 tax year.
Idea catching on
The report also said the new tax has caught the attention of other communities.
Several Alberta municipalities, the province of Saskatchewan and the City of Regina inquired about it.
The City of Wetaskiwin and the towns of Ponoka and Athabasca have since established their own tax rates for derelict properties.
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