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Tax hike could be coming to US based Canadian property owners for "vacant properties"

canada border
Posted at 6:40 PM, Jun 22, 2021
and last updated 2021-06-22 18:40:53-04

BUFFALO, N.Y. (WKBW) — For many American based Canadian home owners, the last year has been difficult.

"In 2019 we had no idea when we left we wouldn't be back because of COVID-19," John Adams, an American who owns a home in Canada, said.

The US-Canadian border has been closed since March of 2020, because of that, many homeowners like Adams have not been able to reach their properties. Now, the Canadian government is planning to increase taxes on those homes.

The plan is a 1% tax for foreign property owners whose properties remain vacant, regardless if the pandemic has forced those vacancies. Last week, the Canadian Deputy Prime Minister announced that the Canadian Government was prepared to implement the tax in the coming year.

Congressman Brian Higgins has previously stated that, if the tax increase remains, Canadian's owning property in the US could see the same sanctions. State senate republican leader Rob Ortt, said he would support that.

For John Adams, he's even paid for advertisements to run near border locations around the country, urging the Canadian government to reconsider the border closure and tax hike.

The tax increase is expected to be implemented by January of 2022.