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MP Baldinelli Raises Questions About Underused Housing Tax

Wednesday, 5 July 2023 12:25

By Linda Morgan

Local MP calling on the Parliamentary Budget Officer to examine the new federal Underused Housing Tax

Niagara Falls MP Tony Baldinelli is among a group of MPs calling for an analysis of the new federal Underused Housing Tax. 

In a letter to Parliamentary Budget Officer Yves Giroux, the group says a cost-benefit examination needs to be done, as the filing for the new tax is on October 31st. 

The deadline has already been extended from its original due date, April 30th, 2023. 

Giroux is being called upon to conduct an analysis and publish his findings before the House of Commons returns on September 18th, 2023. 

The letter notes there is quite a bit of confusion about the tax from Canadians and international property owners. 

"In this interim period, Canadian taxpayers and international property owners have been seeking from this government clarification on several aspects of this new UHT, and many have been left waiting still. For example, neither the Department of Finance nor the Canada Revenue Agency has been able to confirm whether Canadian and/or foreign property owners are required to still file for the UHT, even if they meet the regulatory criteria for an exemption."

The government says the tax, which charges one percent on the ownership of vacant or underused housing in Canada was created to address the country's housing crisis.

However, the MPs say this could have an impact on border communities, including parts of Niagara. 

"In rural and agricultural parts of Canada, Canadian farmers and their families may own multiple properties to house workers to support their operations. Meanwhile, in border communities like Fort Erie and Port Colborne, many U.S residents have owned properties in Canada for decades, and in some cases, families have owned properties for more than a century. These properties in these rural, remote, and tourism locations are not the reason why Canada is facing a housing crisis in major urban centres today."
 

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