Foreign Owners | US elected officials denounce Canada’s 1% tax

(Washington) A bipartisan group of lawmakers in Washington is asking the State Department to seek exemption for Americans from a Canadian foreign-ownership tax.


The group wrote to Secretary of State Antony Blinken, complaining that Ottawa was unfairly punishing US citizens who own second homes north of the border.

The 1 percent “underutilized housing” tax that went into effect earlier this year is intended to discourage foreign real estate speculators from driving up Canadian home prices.

But 11 congressmen from six different states, Democrats and Republicans alike, argue that requiring US landowners to pay the tax is unfair.

They want Mr. Blinken to officially voice American opposition to the measure and advocate for an exemption for Americans who own seasonal second homes.

This measure is mainly aimed at properties in more densely populated areas, but properties in remote areas, such as holiday homes, are no exception.

The tax “unfairly affects Americans who own property in Canada and threatens the strong bond between our countries,” said the letter sent to Mr Blinken and released on Friday. “We ask that you work with your colleagues in the Canadian government to find a solution to exempt Americans from this tax.” »

Signatories include Republican and Democratic lawmakers from Connecticut, New York, New Jersey, Pennsylvania, Ohio, Virginia, Florida and South Carolina.

The campaign is being led by New York State Representative Brian Higgins, who has also advocated easing restrictions on shared land borders. Higgins says many of his constituents have owned real estate in Canada for years.

He believes this tax represents “an offensive and unjustified attack on those Americans who use these properties as second homes rather than as potential investments.”

Republican Rep. Claudia Tenney called the tax a “poorly thought out” and “unfair” tax measure that will drive a wedge between Canada and the United States.

Ottawa has granted an extension to October 31 instead of the usual April 30 deadline to give people more time to determine if their properties fall under the new tax. Late payment penalties vary from $5,000 to $10,000.

Tyrone Hodgson

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