Owners of derelict commercial and business buildings will have to pay up or move on, after City of Edmonton city councillors approved creating new tax rules incentivizing owners to deal with their rundown properties.

Councillors on the executive committee voted Thursday to create a new tax subclass targeting owners of derelict commercial buildings and property, after receiving a report from administration about it.

Owners could see a jump in their taxes by up to 57 per cent if they don’t fix up their decrepit properties or demolish them.

Edmonton already has a similar program for residential derelict properties, which has seen success since it was first implemented in 2023. Several homes have been either torn down or renovated.

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The city heard from community members and business owners at the executive committee meeting who voiced frustration over how derelict buildings attract vandalism, crime, and pose major fire and/or safety risks.

The city hopes applying steeper tax rules for businesses will make owners take a harder look at keeping these vacant properties.

“It’s important to know that council takes this very seriously,” said Coun. Ashley Salvador, who spearheaded the motion.

“These properties are detrimental to the health, well-being and vibrancy of our communities.”

She hopes the new rules will give community members peace of mind the issues are now being addressed.

“This is an indicator that we’re taking a stronger approach and want to see action.”

City administration identified 20 properties that would fit the criteria of a non-residential derelict property, based on complaints.

The properties ranged in value from $194,500 to $8.5 million, for a combined $29 million in assessment in 2026, and generated about $700,000 in taxes in 2025.

Tax forgiveness would be provided to properties that are demolished or remediated partway through the year.

The report about the proposed change noted there are likely additional properties in less-populated areas that would meet the definition of derelict, but have not yet generated complaints.

The city will now get to work on implementation, including defining language about what qualifies as a derelict or unoccupied property.

Assessment notices could be going out to property owners in two years’ time.

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