Every week, Mansion Global poses a tax question to real estate tax attorneys. Here is this week’s question.
Q: Vancouver’s 15% surcharge on overseas investors seems to have unsettled the market there. Do you see this being a trend in other countries or cities?
A: The Vancouver market was a unique situation, said Edward Mermelstein, managing partner of the Manhattan law firm of Rheem, Bell & Mermelstein, because a single investor base, in this case Chinese nationals, was causing local buyers to be priced out of the market.
"This trend is not consistent with most markets today," he said, adding that because of current economic conditions, he does not reasonably expect any major markets to undertake the same strategy.
More:With New 15% Foreign Buyer Tax, Vancouver Sales Cool
In the United States, said Neil Garfinkel, partner in charge of real estate and banking practices at the Manhattan law firm of Abrams Garfinkel Margolis Bergson, it would likely be illegal to tax property owners specifically based on their citizenship. Federal fair housing laws and similar legislation in states and cities, including New York, make sure people are treated equally regardless of their national origin or citizenship.
"Accordingly," Mr. Garfinkel said, "people cannot be discriminated against based on the fact that they are not citizens of the United States or are from other countries."
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