Casual Legal: 2026 changes to property tax exemptions in COPTER
DISCLAIMER: This article is meant to provide information only and is not intended to provide legal advice. You should seek the advice of legal counsel to address your specific set of circumstances. Although every effort has been made to provide current and accurate information, changes to the law may cause the information in this article to be outdated.
By Michael E. Swanberg
Reynolds Mirth Richards Farmer LLP
Alberta Municipalities Casual Legal Service Provider
On January 1, 2026, several amendments to the Community Organization Property Tax Exemption Regulation (“COPTER”) came into force that will expand the scope of certain municipal tax exemptions starting in the 2026 taxation year.
Under COPTER, certain properties can only be exempted from taxation if their use was not restricted to the general public more than 30% of the time. “Restrictions on use” include charging fees of any kind to use the facility (except for minor entrance or service fees), only allowing members of certain groups to use the facility, restricting the use to people who own property (i.e. in a particular community), or restricting the use to members of a particular organization. In practice, this definition has been difficult to apply and has disqualified certain facilities that cater to members of disadvantaged groups in society from receiving an exemption.
COPTER has now been amended to clarify that a property will not be considered “restricted” if its use is restricted to members of certain disadvantaged groups, and the restriction is reasonably necessary to ameliorate that group’s conditions and to achieve the facility’s charitable and benevolent purpose.
Under section 10 of COPTER, a property that is owned by a non-profit organization and used for a charitable or benevolent purpose can qualify for an exemption, provided that the use of the property is not “restricted” more than 30% of the time. Section 10 has now been modified to confirm that, if the charitable or benevolent purpose of the property includes ameliorating the conditions of “disadvantaged persons” in a particular group, and the restriction is reasonably necessary to achieve that purpose, then the use of the property will not be considered “restricted.” The term “disadvantaged person” includes a person who is disadvantaged because of they are members of certain identified groups listed in section 1(1)(b.1).
An example of this would be a facility that provides services to Indigenous people experiencing homelessness – this facility would previously have not qualified for an exemption under COPTER, but with these new changes, it will qualify for an exemption provided that the restriction on use is reasonably necessary to achieve the facility’s charitable and benevolent purpose (and provided that all other requirements for an exemption are met).
This change will result in facilities qualifying for an exemption from taxation for the first time in 2026. Municipalities should consult with their municipal assessors, and legal counsel where necessary, to understand whether these changes will result in specific properties becoming exempt from taxation in 2026.
To access Alberta Municipalities Casual Legal, Alberta Municipalities members can call toll-free to 1.800.661.7673 or email casuallegal [at] abmunis.ca (casuallegal[at]abmunis[dot]ca) and reach the municipal legal experts at Reynolds Mirth Richards and Farmer LLP. For more information on the Casual Legal Service, please contact riskcontrol [at] abmunis.ca (riskcontrol[at]abmunis[dot]ca), or call 310.MUNI (6864) to speak to Alberta Municipalities Risk Management staff. Any Regular or Associate member of Alberta Municipalities can access the Casual Legal Service.
