Canada’s budget watchdog is taking a second look at Ottawa’s new tax on underused housing that critics hope will lead to a last-minute reprieve for U.S. cottage owners.
A spokesman for Niagara Falls MP Tony Baldinelli says the Parliamentary Budget Office has agreed to review its initial 2022 analysis of the measure.
New York congressman Rep. Brian Higgins says he’s hopeful the review will prompt the federal government to reconsider the levy before the Oct. 31 filing deadline.
Higgins has been leading a U.S. charge against the one per cent tax, which is aimed at limiting foreign speculation in Canadian real estate.
He says the tax unfairly punishes U.S. residents who own seasonal properties in Canada that are not exempt because they are outside more populated urban centres.
The review comes as Congress considers new legislation to give older Canadians who own seasonal properties in the U.S. an extra two months a year south of the border.