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Edmonton's multi-million dollar homes could face mansion taxes 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.

"You will pay the same amount whether you currently live in a $ 300,000 home, a $ 3 million home, or a $ 12 million home. This is a problem. "Wardpapastew Coun said. Michael Jantz said.

Earlier this week, the city council passed a motion introduced by Janz to investigate next year's mansion tax enforcement options.

"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 that this change will increase homes by more than $ 1 million, or within that range. He added that one of the 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 that mansion tax implementation could be economically backfired. 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. "People in that group are mobile and what they're trying to do is sell their homes and move to avoid taxes."

Lander says short-term profits He said it is unlikely to exceed long-term profits.

"They have the highest wealth, the highest income, and probably the greatest impact on employment and work."

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Janz states that he wants 4,000 homes in Edmonton worth more than $ 1 million and homes worth more than $ 2 million. increase. See 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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