Six national farm organizations are raising concerns about unintended consequences from the federal government’s Underused Housing Tax that took effect last year.
The Canadian Federation of Agriculture, Canadian Cattle Association, National Cattle Feeders Association, Fruit and Vegetable Growers of Canada, Ontario Fruit and Vegetable Growers Association, and Canadian Canola Growers Association have signed a letter, asking to have farms exempted from the requirement to file a return for each residential property each year.
The tax on residential properties deemed to be vacant or underused was put in place with the intent of alleviating pressure on housing supply and to discourage foreign ownership.
Homes that meet the Canada Revenue Agency’s definition of underused can be subject to a 1 per cent annual tax rate.
Regardless of vacancy or foreign ownership, most Canadian corporations, partnerships, and trusts are required to submit an annual form for every residential property they own.