A bipartisan group of lawmakers in Washington is urging the State Department to call for Americans to be exempted from a Canadian tax aimed at foreign homeowners.
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% “underutilized housing” tax, which came into effect at the beginning of the year, aims to discourage foreign real estate speculators from driving up housing prices in Canada.
But 11 members of Congress from six different states, Democrats and Republicans alike, argue that requiring US cottagers to pay the tax is unfair.
They want Mr. Blinken to officially register American opposition to the measure and work to secure an exemption for Americans who own seasonal second homes.
This measure mainly targets properties located in more densely populated areas, but properties located in remote areas, such as cottages, are no exception.
The tax “unfairly impacts Americans who own property in Canada and jeopardizes the strong bond between our countries,” reads the letter sent to Mr. Blinken and released Friday. “We ask that you work with your counterparts in the Government of Canada 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 led by Democratic New York State Representative Brian Higgins, who also fought for the easing of restrictions on shared land borders. Higgins says many of his constituents have owned property in Canada for years.
He believes that this tax “is an insulting and unjustified attack on those Americans who use these properties not as a potential investment but as a second home”.
Republican Representative Claudia Tenney called the tax an “ill-conceived” and “unfair” tax measure, which will drive a wedge between Canada and the United States.
Ottawa has granted an extension — to Oct. 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 between $5,000 and $10,000.