Congressman Brian Higgins Addresses Canada’s Underused Housing Tax -March 7, 2023

Congressman Higgins Asks United States Trade Representative to Request Consultations Related to Canada’s Underused Housing Tax Mar 7, 2023 Press Release Congressman Says Tax 1% Property Tax Violates Standing Trade Agreements <p>Congressman Brian Higgins (NY-26) is asking United States Trade Representative Katherine Tai to open formal consultations with the Government of Canada to explore if the Underused Housing Tax is inconsistent with the United States-Mexico-Canada Agreement (USMCA).</p> <p>In a <a href='https://higgins.house.gov/sites/higgins.house.gov/files/3-7-23%20USMCA%20UHT_0.pdf'>letter to Ambassador</a> Tai, Rep. Higgins writes, “The United States and Canada have a longstanding, cooperative, and mutually beneficial relationship. Western New York and Southern Ontario exemplify this unique bond. The UHT’s impact on Americans who own property in Canada, however, threatens our binational community and appears to be inconsistent with the USMCA.”</p> <p>One of the principles of the USMCA is the requirement that all parties not discriminate against each other or provide preferential treatment solely to domestic companies or citizens, including with respect to internal taxation. Canada’s Underused Housing Tax does not apply equally to Canadian and U.S. citizens and therefore may violate these principles. The USMCA stipulates parties can request consultations with another party when trade agreement disputes arise.</p> <p>Canada recently imposed a 1% tax on “vacant or underused housing” owned by non-resident, non-Canadians. The intent was to target foreign investment speculation negatively impacting affordable housing in Canada, but it is impacting good-faith, longtime cottage owners who have maintained and enjoyed living among their Canadian neighbors for years.</p> <p>Higgins began sounding the alarm about the Underused Housing Tax since it was first proposed in the Government of Canada’s Budget 2021. Most recently, <a href='https://higgins.house.gov/sites/higgins.house.gov/files/2-9-23%