Canmore is one of the most popular tourist destinations in Canada, but the town has recently implemented a number of significant policy changes around tourist homes. These recent changes are designed to address the availability of housing and community liveability and will come into effect from the 2025 tax year.
If you are a Canmore tourist home owner and are unsure what these changes mean for you, we thought we would take a closer look…
What is a Canmore tourist home?
Before we explore these changes, it’s first important to understand what we mean by the term tourist home. These are properties that have been designated under the Land Use Bylaw for use as a short-term rental. Historically, owners were able to declare personal use of these properties and benefit from lower residential tax rates. However, these recent policy shifts aim to eliminate this.
Key changes for 2025
The key changes to the Canmore tourist home regulations for 2025 include:
1. Uniform taxation at non-residential rates
Starting in the 2025 tax year, all properties designated as tourist homes will be taxed at the non-residential rate. This is regardless of personal use declarations. This change aims to ensure that properties used for short-term rentals contribute equitably to municipal revenues.
While a tourist home always needed to be registered with the tax department as a short-term rental, it was previously very easy to switch back and forth. Now, all tourist homes will automatically pay the higher tax rate unless registered for long-term use. Once switched to long-term, you will not be able to switch back to short-term without development permits.
Those properties remaining as short-term rentals will still need to secure a business license before letting it out to guests.
Elimination of tourist home designation in certain districts
The Town Council has moved forward with removing ‘Tourist Home’ as a permitted or discretionary use in several land use districts. Existing tourist homes in these areas can continue operating as non-conforming uses. However, approvals for new tourist homes in these districts will no longer be granted.
Simplified conversions from tourist home to residential use
To encourage long-term residency, the Town has streamlined the process for converting tourist homes to residential use. Notably, development permit fees for such conversions have been waived through December 31, 2025. This initiative is designed to increase the availability of long-term housing options.
What does this mean for property owners?
For property owners with tourist home designations, they should begin anticipating a significant increase in property taxes due to the shift to non-residential tax rates. That means it is crucial to start preparing for these in your financial planning so you can mitigate the potential fiscal impact. Owners should also carefully review how best to manage their tourist homes in order to ensure they are maximizing revenue and minimizing costs.
These policy changes also have an impact on the local community and reflect the town’s commitment to addressing housing shortages and enhancing community living.
Need help with your Canmore tourist home?
These recent changes to Canmore tourist home policies mark a strategic effort to balance tourism with housing needs. However, they do not mean that owning a short-term rental in the town is not worthwhile. It is still a wonderful way to boost your income and meet guests from around the world.
If you own a Canmore Airbnb, it is essential that you are working to ensure you are maximizing your profitability and giving guests the very best experience possible. Here at Canmore Co-Host, we know how challenging it can be to manage your short-term rental. That is why our experienced team is on hand to help you every step of the way.
As long-term Canmore residents and experienced Airbnb Superhosts and Prohosts, we know what it takes to run a successful business. Get in touch today to learn more about our services and how we can help you!
