Derelict Property Tax Subclass Bill

Summary#

Edmonton City Council gave first reading to Charter Bylaw 21497 on September 8, 2026; it has not passed. The bylaw would create a derelict non-residential property tax subclass under the City’s Charter. City staff say its goal is to help address issues associated with derelict non-residential properties.

  • If Council passes the bylaw, the subclass must apply across Edmonton.
  • A property could be assessed into it only if it has been unoccupied for at least a year.
  • Council may set a different tax rate for the subclass. The bylaw does not set a rate; any higher non-residential rate must be less than five times the lowest residential rate.
  • After first reading, the bylaw is to be advertised. It would need third reading to pass.

What it means for you#

  • Owners of non-residential properties: If the bylaw passes, a property unoccupied for at least a year could be assessed in the new subclass. The materials do not explain how the City would decide which properties qualify.
  • Taxpayers: The bylaw does not set a new tax rate at this stage. Council could set a different rate for the subclass later.
  • City taxpayers: City staff say implementation would require operating and capital funding if the bylaw passes.
  • Everyone: The subclass would apply citywide, not only in selected areas.

Money#

There are no immediate financial implications from first reading, according to City staff.

  • If passed, implementation may require up to $274,000 in ongoing funding starting in 2027, plus up to $1.0 million in capital investment for the City’s computer system.
  • A preliminary estimate suggests about $400,000 in additional annual revenue could be collected if Council had set the highest allowable rate in 2025. This is an estimate under that condition, not a guaranteed return.

What is unclear#

  • The supplied material does not include the bylaw text, so its full rules could not be checked.
  • Beyond the one-year vacancy requirement, the materials do not define “derelict” or explain how properties would be assessed into the subclass.
  • The bylaw does not specify a tax rate. It is unclear what rate Council might set.
  • The timing and details of the assessment process, notice to owners, and any way to challenge an assessment are not provided.
  • The bylaw has only had first reading. It must still be advertised and receive further readings to pass.

Case for#

  • City staff say the subclass could help address issues associated with derelict non-residential properties, which may pose different challenges from derelict homes.
  • Staff say it builds on the definition and practices developed for Edmonton’s residential derelict subclass, created in 2023.
  • Some respondents to a 2024 survey about the residential subclass expressed support for a non-residential version, though they were not directly asked about it. Staff also report informal feedback in favour if it proves effective.

Case against#

  • The subclass could bring added costs: City staff estimate up to $274,000 in ongoing funding and up to $1.0 million in capital investment.
  • The revenue estimate depends on Council choosing the highest allowable rate used in the 2025 comparison. The materials do not show what revenue a different rate might bring.
  • The rules for identifying and assessing properties are not clear from the supplied material, making it hard to judge how the subclass would affect individual owners.

Votes

Edmonton City Council, item 8.1: That the following Bylaws be read a first time: 8.1 Charter Bylaw 21497 - Non-Residential Assessment and Supplementary Assessment Subclass Charter Bylaw (voted on together with 6 other items)

For (100%)