Jacobs seeks extra tax on ‘underused’ property in US owned by foreign nationals
Press Release, Congressman Chris Jacobs
WASHINGTON, D.C. – Congressman Chris Jacobs (NY-27) introduced the American Property Act designed to combat the Canadian government’s discriminatory property tax set to potentially impact countless Americans with generational properties in Canada.
“For many Western New Yorkers, owning property in Canada has been a part of their family for generations. These homes are handed down, and visiting them, especially during the summer months, is a way of life,” Jacobs said. “Since the beginning of the pandemic, the Canadian government has made it clear how they view Americans who either have binational families or enjoying frequenting Canada – they have been ostracized and had countless ridiculous restrictions placed upon their travel.”
“Most recently we witnessed this with Canada’s decision to levy a tax against ‘underused’ housing owned by foreign nationals. For many Americans with property, these places are vacation homes and thus remain uninhabited for months out of the year, putting families in jeopardy of having to pay additional money on top of the taxes they pay the Canadian government each year.”
Rep. Jacobs’ American Property Act would levy a tax equal to 1% of an underused property’s value that is owned by a foreign national. To be considered used, the property must be occupied for at least 180 days in one calendar year. This tax rate matches the one levied by the Canadian government on foreign-owned property which was enacted in June of this year.
“Canada’s tax is a slap in the face for many – we made clear should Canada pursue this action there would be retaliatory action, today that action is being taken through this legislation,” Jacobs said. “Underused, foreign-owned, properties in the United States will now be subject to the same tax levied by the Canadian government.”