Americans should be exempt from Canada’s foreign housing tax, members of Congress say

WASHINGTON –

A bipartisan group of U.S. lawmakers is urging the State Department to ask that Americans be exempted from Canada’s tax on overseas property house owners.

The group has written to Secretary of State Antony Blinken to complain that Ottawa is unfairly punishing U.S. residents who personal trip properties north of the border.

The so-called underused housing tax took impact firstly of the 12 months to discourage overseas actual property speculators from driving up housing costs.

But 11 members of Congress from six completely different states — Democrats and Republicans alike — say it is unjust to require U.S. cottage house owners to pay the one per cent levy.

They need Blinken to formally register U.S. opposition to the measure and to work in direction of profitable an exemption for Americans with seasonal properties.

The restrictions are aimed primarily at properties in additional populated areas, which frequently implies that extra distant places like cottages are usually not exempt.

The tax “is unfairly impacting Americans who own property in Canada and putting the strong bond between our countries in jeopardy,” reads the letter to Blinken launched Friday.

“We request that you work with your counterparts in the government of Canada to find a solution to exempt Americans from this tax.”

Signatories embody lawmakers from either side of the aisle from Connecticut, New York, New Jersey, Pennsylvania, Ohio, Virginia, Florida and South Carolina.

The marketing campaign is being led by Rep. Brian Higgins (D-N.Y.), a frequent crusader for streamlined journey throughout the shared land border, who says a lot of his constituents have owned property in Canada for years.

“The underused housing tax is an insulting and unjustified attack on these Americans who use these properties not as a prospective investment but as a second home,” Higgins stated in a press release.

“The tax shouldn’t be imposed on Americans. It sets a dangerous precedent for actions that damage a robust binational exchange.”

Republican counterpart Rep. Claudia Tenney known as the tax a “poorly conceived” and “unfair and unjust” measure that can drive a wedge between Canada and the U.S.

“I join my colleagues on both sides of the aisle in urging the secretary of state to work with the Canadian government to rectify this misguided policy.”

The federal authorities granted an extension — Oct. 31, as a substitute of the same old April 30 due date — to present folks extra time to find out if their properties are eligible. Penalties for late cost vary between $5,000 and $10,000.

This report by The Canadian Press was first revealed May 26, 2023.