Canada is trying to tax summer homes on the Ontario shores of Lakes Erie and Ontario and the Niagara River, but that could be a violation of an international treaty.
Canada has the problem of many richer countries: people buying expensive homes and only using them part of the time because they have other homes to visit. It's particularly a problem in Toronto and Vancouver, but the issue will also hit Bay Beach and Windmill Point.
The Trudeau government has a solution: a 1% annual tax on what is considered underused residential property. Rep. Brian Higgins agreed the unused housing is a problem, but he said it can't be dealt with by taxing cottages on the Canadian shore, where he grew up.
The South Buffalo Democrat said it's particularly unfair for Americans who haven't been able to use their summer homes during the pandemic. He said it's also unfair since there is no similar tax on Canadian-owned homes on this side of the border, like in Ski Country's Ellicottville.
Higgins is pushing U.S. Trade Ambassador Katherine Tai to play hard-ball with Canada on the cottage tax.
"That's in violation of the U.S.-Mexico-Canada trade agreement. You can't discriminate against, based on nationality, relative to property. And we're going to fight it," he said. "I've dealt with the U.S. trade ambassador, Katherine Tai, and our hope is that she can instill the wisdom of not doing this in Canada."
Higgins said the tax is just another of the border blocks that the Canadian government is keeping in place, delaying trade and personal travel across the border.
