Mr. Speaker, budget 2021 announced the government’s intention to implement a national, annual 1% tax on the value of non-resident, non-Canadian owned residential real estate that is considered to be vacant or underused, effective January 1, 2022. The government indicated that it will release a consultation paper in the coming months to provide stakeholders with an opportunity to comment on the parameters of the proposed tax. The government also indicated that, moving forward, it intends to work closely with provinces, territories and municipalities.
With regard to part (a), one internal memo was prepared by the department in relation to the proposal announced in budget 2021.
With regard to part (b), the title of the memo referred to in part (a) was “Tax on Underused Housing” and was dated in 2021.
With regard to part (c), the fiscal impact of the proposal was estimated when planning for budget 2021 and was presented in internal budget documents.
With regard to part (d), the fiscal impact was calculated by applying a 1% tax on the estimated value of non-resident, non-Canadian owned residential real estate considered to be vacant or underused. The value of the proposed tax base was estimated using Statistics Canada data on foreign-owned properties and residential property values, as well as information on British Columbia’s speculation and vacancy tax.
With regard to part (e), the date of the release of a backgrounder has not yet been determined. However, budget 2021 indicated that the document would be released in the coming months.
With regard to part (f), while the length of the consultation period has not been established, it would not be uncommon for consultations on proposals such as these to be open for public comment for 60 days.