In June, Ward papastew Coun. Michael Janz asked the city administration to look into how a mansion tax could be applied to property taxes and write a report on his findings. Janz says he wants people who earn more to pay more, so he offsets taxes for owners of cheaper properties. “How do we make sure that when we’re collecting services that go toward the good of everyone, that those who have a little bit more can contribute a little bit more,” Janz told CBC News. In Vancouver, councilors recently voted down a proposal to implement a progressive house tax, which would see homeowners pay an extra one per cent on homes worth more than $5 million and 2 per cent on those worth more than 10 million dollars. As for when the tax rate and home price limits will be, Janz said the city administration’s findings will allow him to determine those logistics. “It may not be [based on] real property value,” Janz said. “It can be about the features of the home. that someone with a gold toilet should pay more than someone with a porcelain toilet.’ Some brokers openly opposed Janz’s idea, suggesting it would drive Edmonton’s top investors out of town. Marlene Pahl, Realtor with Royal LePage, has listings that qualify for homestead tax. She and her colleagues believe such a tax “is just ridiculous,” she told CBC News in an email. “The so-called townhouses are already being taxed at their value,” Pahl said, adding that, in the long run, a tax on the townhouses could reduce city revenue. Edmonton also has fewer mansions compared to other Canadian cities such as Vancouver and Toronto, he said. According to Janz, there are 4,000 homes in the city valued at more than $1 million. Bradley Mitchell, CEO of the Alberta Real Estate Association, believes the mansion tax would be unfair to those particular homeowners. “The idea is a little weird,” Mitchell said. “Estate taxes are fair. Just because you’ve been more successful doesn’t mean you should pay a higher rate.” Applying an additional tax to more expensive homes, Janz argues, would help reduce annual property tax increases for other owners. “We should be collecting more of this tax from those at the top,” Janz said. The survey should be completed by September, at which time Janz will present a proposal to the council, he said.
