WASHINGTON – The Canadian government is giving foreigners who own property north of the border – including some Buffalo-area residents who own cottages on Lake Erie – a temporary break as it implements its new underused housing tax.
Under the law, people who owe the 1% tax were due to pay it by Tuesday. But on that very day, the Canadian government announced that it is extending the deadline to pay what is owed for the 2022 tax year to April 30, 2024.
The Parliamentary Budget Office agreed to review the 1% tax on properties that are not occupied full time that was imposed this year as part of the government’s attempts to curb housing speculation in hot urban real estate markets.
“The Underused Housing Tax is one part of our plan to combat the housing shortage,” Marie-Claude Bibeau, Canada’s minister of national revenue, said in a statement. “We understand that many homeowners may not be aware that they are subject to this new law. This is why I want to ensure that every effort has been made to inform homeowners and help them meet their obligations.”
The extension means that property owners probably won’t have to pay the tax until after a cost-benefit analysis and a House of Commons report on the tax are released. Rep. Brian Higgins, a Buffalo Democrat,…
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