Effective January 1, 2023, Canada has implemented its new Underused Housing Tax on non-Canadian property owners.  The UHT, which affects both individual and corporate property owners, is equal to one percent of the property value--the higher of the taxable value and the fair market value.  

Before filing, property owners should confirm with their Canadian attorney or accountant whether they fall under any exemptions, including the following that may well be the most common exemptions for property owners in and around Fort Erie, Ontario:

1.) The house was newly built;

2.) The house was purchased in the last calendar year;

3.) The house is seasonal in nature (i.e., not winterized or inaccessible based on the season);

4.) The house was unlivable for a certain period of time within the last calendar year due to renovations, disaster, or other hazardous conditions;

5.) The house is a vacation property in a rural area and occupied by the owner or the owner's spouse/common law partner for a minimum of 28 days in the last calendar year;

6.) The owner is deceased.

The deadline for the UHT filing is April 30, 2023.  Individuals are subject to a minimum penalty of $5,000 for untimely filings, while corporations are subject to a minimum penalty of $10,000.  It was recently announced, however, that the Canadian government has delayed the issuance of these penalties through October 31, 2023.  It should be noted, though, that the deadline for the filing remains April 30.