Canmore, a mountain town in Canada, is taking significant steps to address its housing affordability crisis through the proposed Livability Tax Program. This initiative aims to create residential property subclasses based on occupancy, imposing higher tax rates on properties not used as primary residences. This innovative taxation approach is part of a larger strategy to manage the influx of non-resident buyers and ensure that local housing remains accessible to Canmore's residents.

The recent legal backing from the Alberta Court of Appeal is a pivotal moment for the program, as it upheld the legality of the bylaw in the case Ross v. Canmore. The court found that the Livability Tax Program was introduced to address a legitimate municipal concern, further legitimizing the town's efforts to manage its housing challenges. This decision not only enhances the chances of the program's implementation but also aligns Canmore with other Canadian cities like Vancouver and Toronto, which have already introduced similar taxation measures to combat housing scarcity.

If enacted, the Livability Tax Program will impose an additional tax of about 0.4 per cent on the assessed value of properties classified as 'second homes', incentivizing homeowners to either occupy or rent out their properties. This measure is seen as a critical step in preserving the town's livability and ensuring that local residents are not displaced due to rising property values and rental costs fueled by speculative real estate investments.