While there was some concern, the Federation of Ontario Cottagers Associations says a new federal tax will not impact its members.
The Federation had expressed concerns about the Underused Housing Tax that came into effect this year. They were worried that the tax would be applied to seasonal secondary property owners, as these properties often aren’t lived in at all times. However, the Federation now says this is not the case. They still pledge to be vigilant on the topic, as it is not clear if American owners of cottages will be impacted.
The Underused Housing Tax is an annual 1 percent tax on the value of properties that are considered to be vacant or underused, levied against the owner of the property. Owners must file an annual declaration for each residential property they own. This is required to be filed by April 30th of each year.