New homes are built in a housing construction development in the west-end of Ottawa on Thursday, May 6, 2021. THE CANADIAN PRESS/Sean Kilpatrick

New homes are built in a housing construction development in the west-end of Ottawa on Thursday, May 6, 2021. THE CANADIAN PRESS/Sean Kilpatrick

Budget’s foreign-homebuyers tax could bring in $509 million over 4 years, PBO says

Liberals are proposing a one per cent tax on vacant homes owned by foreign non-residents

Parliament’s spending watching suggests in a new report that the federal government may not bring in as much new revenue as it expects from a proposed tax on foreign homebuyers.

The Liberals are proposing a one per cent tax on vacant homes owned by foreign non-residents to cool an overheated housing market across the country.

The government’s recent budget estimated the tax would bring in $700 million between 2022 and 2026, once the details are finalized and the tax put in place.

But in a new report, parliamentary budget officer Yves Giroux estimates the government may not get as much as that.

Giroux’s office estimates overall revenues over that time at just over $500 million after taking into account how some buyers may respond to the imposition of new tax.

But he warns that his and the government’s estimates could change depending on who has to ultimately pay the tax, and who is exempt, such as Americans with vacation homes in tourist destinations like Whistler, B.C.

Throw into the mix what Giroux calls poor and incomplete information on foreign ownership of residential real estate in Canada and the final numbers could be far different than what he expects.

In a separate report made public Thursday, Giroux’s office estimates that a budget proposal to collect federal sales tax on some goods sitting in Amazon warehouses would net the government just over $1.6 billion over the next five years.

The proposal would try to close a loophole for unsold goods foreign-based sellers ship to Canada, then house until they are sold and shipped domestically to local buyers.

GST is collected on the wholesale value of the goods when they come across the border but the federal sales tax isn’t always collected by sellers when the goods are sold to consumers.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Real estate

Just Posted

Dawn Low worked for the City of Revelstoke for 22 years. She became CAO for our community in 2019 and held the position until May, 2021.
Revelstoke’s Dawn Low hired as CAO for Armstrong

Dawn Low was the CAO in Revelstoke until end of May

The Five-Cairn Trail is roughly 25 km long and traverses between two icefields. A friend and I hiked it in 2009. (Liam Harrap)
Liam’s Lowdown: That time I got rescued in Iceland

Sometimes we need to call for help and thank goodness it comes

The Great Ogopogo Bathtub Race has been held in Summerland as a fundraising event. Do you know which Canadian city introduced this sport? (Black Press file photo)
QUIZ: A summer’s day at the water

How much do you know about boats, lakes and water?

Revelstoke City Council approved a cost sharing agreement for the upcoming construction of a traffic circle as well as a realignment on Nichol Rd. (Jocelyn Doll/Revelstoke Review)
City paying 10% of costs for upcoming Nichol Rd. round-about

Revelstoke Mountain Resort and Mackenzie Village are paying the rest

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

Four golfers from Fairview Mountain Golf Club in Oliver will golf from sunrise to sunset to raise funds for ALS on June 29. (Submitted)
Golfing from sunrise to sunset in Oliver for ALS

Four golfers from Fairview Mountain Golf Club have taken up the challenge June 29

FILE – Provincial health officer Dr. Bonnie Henry talks about B.C.’s plan to restart the province during a press conference at Legislature in Victoria, Tuesday, May 25, 2021. THE CANADIAN PRESS/Chad Hipolito
B.C. officials watching U.K.’s Delta variant struggles, ‘may need to slow’ restart plan

Studies show that one dose of vaccine is only 33 per cent effective in preventing B.1.617.2 spread

RCMP Const. Shelby Patton is shown in this undated handout photo. RCMP say that Patton was hit by an allegedly stolen truck that he had pulled over on Saturday morning in Wolseley, east of Regina. THE CANADIAN PRESS/HO, RCMP
Pair charged in Saskatchewan Mountie’s death make first court appearance

Const. Shelby Patton was hit by an allegedly stolen truck that he had pulled over Saturday morning

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

David and Collet Stephan leave for a break during an appeal hearing in Calgary on Thursday, March 9, 2017. THE CANADIAN PRESS/Todd Korol
Appeal Court rejects stay for Alberta couple facing third trial in son’s death

Pair accused in their earlier trials of not seeking medical attention for their son sooner

Jann Arden will embark on Canada-wide tour Spring 2022 with a stop in Penticton at the South Okanagan Events Centre on June 13. (Contributed)
Jann Arden schedules Okanagan stop on 2022 Canada-wide tour

The Jann Arden Live! tour has been rescheduled for 2022

A fire deliberately set in a washroom facility in Vernon’s transit terminal could cost the city around $25,000 to repair. (City of Vernon)
Burned-out bathroom could cost Vernon $25K

Despite changes made by city, vandalism on the rise at transit loop loos

Cody Bandsma practises kiting with his new paraglider wing at Blackburn Park in Salmon Arm on Wednesday, June 9, 2021. (Lachlan Labere-Salmon Arm Observer)
VIDEO: Cody Bandsma reaching new heights over the Shuswap

Former 100 Mile resident discovers Salmon Arm by air with powered paraglider

Most Read