(WBEN) - 34 Canadian members of Parliament have written a letter to the Parliamentary Budget Officer calling for a cost-benefit analysis into their recently passed Underused Housing Tax (UHT).
Canada recently imposed a 1% tax on “vacant or underused housing” owned by non-resident, non-Canadians in order to combat foreign investment that hinders affordable housing, particularly in urban areas.
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This comes as great news to Congressman Brian Higgins (NY-26), who has been advocating against the tax and speaking with members of Parliament on the matter from the beginning.
"This is a very favorable move, asking for a cost-benefit analysis before the October 31 filing deadline. My hope is that we can get a carve out and that we have made the argument that these properties are fully utilized on a seasonal basis. These cottages and summer homes are owned by Western New Yorkers, owned by Americans. They've been in families for several generations, and they are not underutilized. They're not vacant properties. They're fully utilized for the purpose as to why they were built," said Higgins.
The letter, led by Tony Baldinelli, the Member of Parliament representing Niagara Falls, Ontario, notes that “Canadian and foreign property owners and concerned, confused, uncertain and anxious about this new UHT and their tax obligations.”
The letter continues, “While the intent of this new tax is to address Canada’s housing crisis in major cities like Toronto and Vancouver, its impacts are catching many Canadian and foreign property owners by surprise in Canada’s rural and agricultural areas, as well as in Canadian border communities, such as those in South Niagara.”
The signers ask the Parliamentary Budget Officer to publish the findings of the analysis by September 18, 2023, noting the urgency of receiving the assessment before the Underused Housing Tax filing deadline of October 31, 2023.
The congressman hopes that this conducted analysis will provide data that will address the problems between houses and apartment rentals in heavily-populated cities like Toronto and Vancouver and make that clear distinction from beach homes and cottages along Southern Ontario.
"Legislation that was put forward to address one problem has created another problem. And these individuals who have had these cottages in their families for generations are being unfairly taxed. They are net contributors to the Canadian economy in the province of Southern Ontario, but more specifically, Southern Ontario in the Niagara region."
Congressman Brian Higgins says he is cautiously optimistic that a proper solution will be reached that will not penalize American longtime property owners who utilize their Canadian houses.
"Before anything is done, you have to continue to put pressure on and continue to advocate otherwise, people just forget about it, and they go away. I don't go away. I have an obligation to my constituents in Buffalo in Western New York to advocate on their behalf."