Buffalo, NY (WBEN) - Buffalo Congressman Brian Higgins says he's pleased the Canadian government is delaying the deadline for people to file for the Underused Housing Tax to October 31st. He says it's an ill-conceived law that hurts WNY"s cottage community.
"This is a good development for the hundreds of residents from Western New York and across the United States who have been frustrated with the lack of notification and information and frightened that processing delays, which are no fault of their own, could result in steep penalties," says Higgins, who serves as Co-Chair of the Northern Border Caucus. "Still, this is only a small reprieve in what amounts to a wrongful tax on good neighbors. We are continuing the fight to see the Underused Housing Tax eliminated entirely."
Higgins says the new 1% tax on "vacant or underused housing" owned by non-resident, non-Canadians is putting a financial strain on Americans, many of whom have contributed to Canada's economy and owned cottages in Canada for generations.
Higgins calls the law ill-conceived and they are not prepared to implement this. He says he will continue to fight the matter. "I believe that in violation of discrimination as it relates to taxation of the member countries of the US, Mexico and Canada Free Trade Agreement," claims Higgins.
The tax forms are due in Canada by April 30th, but owners must first file to receive a tax identifier number. In many cases, Higgins says it takes weeks to receive the tax ID number impacting the ability to file in a timely manner. Failure to pay the tax comes with a penalty ranging between $5,000 and $10,000, plus interest.
