Luxury home owners in Edmonton, Canada are facing some changes to their property taxes this year. The City of Edmonton is introducing a new luxury home tax that will be applied to properties valued at over $1 million. This tax is expected to generate an additional $3 million in revenue for the city and will be used to help fund infrastructure projects and other municipal services.
The luxury home tax is based on the assessed value of the property and will be applied to all homes valued at over $1 million. The tax rate will be 0.2% of the assessed value, which means that a home valued at $1.5 million would be subject to a tax of $3,000. This tax is in addition to regular property taxes that luxury home owners already pay.
In addition to the new luxury home tax, the City of Edmonton is also introducing an additional tax for luxury homes that are vacant for more than six months. This tax is intended to discourage people from leaving their luxury homes vacant for long periods of time, as it will make it more expensive to do so. The rate for this tax will be 0.4% of the assessed value, which means that a home valued at $1.5 million would be subject to a tax of $6,000.
Finally, the City of Edmonton is also introducing a new tax on luxury homes that are used as short-term rentals. This tax is intended to help offset the costs associated with regulating short-term rentals and will be applied to all luxury homes that are rented out for less than 30 days. The tax rate will be 0.6% of the assessed value, which means that a home valued at $1.5 million would be subject to a tax of $9,000.
Overall, these changes to the property tax system in Edmonton are expected to have a significant impact on luxury home owners. While the additional revenue generated by these taxes will be used to fund important infrastructure projects and services, luxury home owners may find themselves paying significantly more in taxes this year. It is important for luxury home owners to be aware of these changes and to factor them into their financial planning.