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Edmonton's multi-million dollar homes could face "condominium tax" in 2023

Owning a multi-million dollar home with a luxurious pool and movie room can be rewarding in many ways. But next year, owning a mansion in Edmonton could lead to higher property tax payments.

"It's a problem to pay the same amount whether you currently live in a $ 300,000 home, a $ 3 million home, or a $ 12 million home."Ward papastewCoun. Michael Jantz said.

Earlier this week, the city council passed a motion introduced by Janz to investigate options for implementing the "Mansion Tax"next year.

"It's not fair to bottom-end people who are paying the same amount compared to people who are much more capable of paying taxes at higher tax rates," Yants said.

Read more: An annual 0.2% additional tax on homes over $ 1 million could cool the home market: Report

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Janz says this change will increase homes by more than $ 1 million, or within that range. He added that one of the housing tax cuts could be seen.

In any case, Yants wants to see additional money from taxes used to accommodate other vulnerable social programs in the city.

"If we can increase our income a little more, or if we can distribute the burden a little more equitably for those who are at the bottom of the spectrum for tax purposes, we will be able to do it. To help make it a little more affordable, "Yants said.

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However, economist Moshe Lander said the implementation of mansion taxes could financially backfire. Said.

"If the city council really wants to do something, it's not Robin Hood's exercise of'targeting a group of people and robbing them of money'," Lander said.

Lander said short-term profits are unlikely to outweigh long-term profits.

"People trying to move out of the city are exactly what you want in the city," he said.

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Janz talks about 4,000 homes in Edmonton worth more than $ 1 million. It states that it is a home worth $ 2 million. He wants to pay more.

Read more:2022 Edmonton's property tax notice will be mailed to you

Real estate ownership this year Persons have a 1.9% increase in property tax. On average, this corresponds to an increase of $ 14 in valued asset value for every $ 100,000.

The city is expected to collect a little less than $ 2.3 billion in property taxes, of which $ 469 million is being collected on behalf of the Alberta Government for state education.

Mansion taxes will be further discussed in the parliamentary meeting room this fall.

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