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

Hundreds gathered at Surrey’s Holland Park Friday (June 11) in memory of the Muslim family killed in London, Ont. on Sunday (June 6). (Photo: Shane MacKichan)
Educating public ‘exhausting,’ says White Rock Muslim Association past president

Asad Syed says public needs to be more vocal in their condemnation

The City of White Rock turns 63 today. (file photo)
City of White Rock 2020 annual report available for review

Report to be discussed at June 28 council meeting

Dooris Raad was last seen in South Surrey’s Ocean Park neighbourhood on June 7. (Surrey RCMP photo)
Police tape is shown in Toronto Tuesday, May 2, 2017. Statistics Canada says the country's crime rate ticked up again in 2018, for a fourth year in a row, though it was still lower than it was a decade ago. THE CANADIAN PRESS/Graeme Roy
CRIME STOPPERS: ‘Most wanted’ for the week of June 13

Crime Stoppers’ weekly list based on information provided by police investigators

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

Premier John Horgan speaks as provincial health officer Dr. Bonnie Henry, right, and health minister Adrian Dix look on during a press conference to update on the province’s fall pandemic preparedness plan during a press conference from the press theatre at Legislature in Victoria, Wednesday, Sept. 9, 2020. THE CANADIAN PRESS/Chad Hipolito
B.C. officials to provide details on Step 2 of COVID reopening plan Monday

Step 2 could allow for larger gatherings and a resumption of recreational travel

Indigenous Services Minister Marc Miller is seen during a news conference, Wednesday May 19, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Indigenous child-welfare battle heads to court despite calls for Ottawa to drop cases

Feds are poised to argue against two Canadian Human Rights Tribunal rulings

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?

Two-year-old Ivy McLeod laughs while playing with Lucky the puppy outside their Chilliwack home on Thursday, June 10, 2021. (Jenna Hauck/ Chilliwack Progress)
VIDEO: B.C. family finds ‘perfect’ puppy with limb difference for 2-year-old Ivy

Ivy has special bond with Lucky the puppy who was also born with limb difference

A million-dollar ticket was sold to an individual in Vernon from the Lotto Max draw Friday, June 11, 2021. (Photo courtesy of BCLC)
Lottery ticket worth $1 million sold in Vernon

One lucky individual holds one of 20 tickets worth $1 million from Friday’s Lotto Max draw

“65 years, I’ve carried the stories in my mind and live it every day,” says Jack Kruger. (Athena Bonneau)
‘Maybe this time they will listen’: Survivor shares stories from B.C. residential school

Jack Kruger, living in Syilx territory, wasn’t surprised by news of 215 children’s remains found on the grounds of the former Kamloops Indian Residential School

A logging truck carries its load down the Elaho Valley near in Squamish, B.C. in this file photo. THE CANADIAN PRESS/Chuck Stoody
Squamish Nation calls for old-growth logging moratorium in its territory

The nation says 44% of old-growth forests in its 6,900-square kilometre territory are protected while the rest remain at risk

Most Read