Ward 1 - Sonya Sharp

Short-Term Rentals: ensuring fairness and balance in Calgary

Short Term Rentals: ensuring fairness and balance

Councillor Sharp's motion arising

Councillor Sonya Sharp recently introduced a motion to address the growing impact of short-term rental properties, such as those listed on platforms like Airbnb and VRBO, in Calgary. The motion, which was approved by Council, directs the City Administration to explore the feasibility of taxing short-term rentals at the same property tax rate as businesses. This change would specifically target properties where the owner does not reside on-site. Administration will present a detailed report on how this policy could be implemented by mid-2025.

Why this motion matters

Short-term rentals currently occupy a regulatory and tax grey area, distinct from traditional accommodations like hotels or Bed and Breakfast establishments, which are subject to business taxes and stricter regulations. This disparity creates an uneven playing field, giving short-term rental operators a financial advantage while placing additional pressures on Calgary’s housing market and communities.

“This is about leveling the playing field,” said Councillor Sharp. “Short-term rentals bring value to our city, but they also contribute to housing challenges and community disruptions. By taxing these properties like businesses, we can ensure fairness and better manage their impact on our neighbourhoods.”

Key concerns include:

  • Reduced housing supply: When residential properties are converted into full-time short-term rentals, they remove valuable housing stock from the market, limiting options for families and driving up housing costs.
  • Community disruptions: High turnover of short-term rental guests can lead to noise complaints, parking challenges, and safety concerns, impacting neighbourhood stability and livability.

Striking the right balance

While there are undeniable benefits to short-term rentals—such as boosting tourism, driving economic growth, and providing flexible housing solutions—this motion is about fairness. These properties operate as businesses and should be treated as such, especially during Calgary’s ongoing housing crisis.

Next steps

Over the coming months, City Administration will research best practices from other municipalities, consult with stakeholders, and develop a framework for implementing the proposed tax adjustments. The report, expected by mid-2025, will provide Council with the tools to make informed decisions on this important issue.

As Calgary navigates this complex challenge, Councillor Sharp remains committed to finding equitable solutions that prioritize housing availability, community well-being, and economic growth.

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