Edmonton approves tax forgiveness program for derelict property owners

Edmonton City Council approved pro-rated tax forgiveness for derelict property owners on Wednesday.

The move represents an additional incentive for derelict owners to clean up their properties quickly, following the establishment of a derelict residential tax subclass last fall.

Under the subclass, properties assessed as derelict are charged a tax rate that is approximately three times higher than the general residential rate.

With this new policy, property owners can apply for a refund of the derelict residential property tax for the portion of the year that their property was cleaned up.

For instance, if a derelict house is demolished on May 1, this prorated tax forgiveness would mean the property owner would pay taxes at the derelict tax rate for January-April, and then would receive a refund so that their net amount paid is equivalent to the general residential rate for May-December.

The new policy takes effect immediately, allowing property owners who cleaned up their properties in 2024 the ability to apply for reimbursement of the additional taxes they paid this year.

The city says more than 200 properties have been assessed as derelict in 2024 and 23 have been demolished to date.