There is good news for home builders in the Quinte Region and across the country.
Changes are being made to filing rules on the Underused Housing Tax, a 1% tax on vacant or underused housing meant to ensure non-resident owners of homes in Canada are paying their fair share.
Home builders with vacant homes in their possession are exempt from the tax but not from filing which is costing them time and money.
The Quinte Home Builders Association recently met with Bay of Quinte MP Ryan Williams to express their frustration with the red tape.
Now the Canadian Home Builders Association says it has worked with the federal government and the Canada Revenue Agency on two new interpretations that will provide clarity and greatly reduce the level of effort to complete the UHT tax return.
CHBA has secured clarification on what constitutes “substantially completed” as it pertains to the construction of a residential property, which was a key concern for members.
The national association has also successfully secured an interpretation to avoid requiring filing a taxable value (assessed or sale price, Lines 280 and 285 of UT-2900) of a property if the owner is exempt from paying any tax, which greatly minimizes the reporting burden.
CHBA’s ultimate goal is to have the home building industry completely excluded from UHT filing, however, a full exclusion will likely require a change to the legislation itself, which will take a longer period of time.
As they continue to advocate for a exemption, members are still encouraged to contact their MPs about how builders, developers and renovators should be excluded from having to file UHT-2900 returns.
