The Canadian Snowbird Act – A Win for the U.S. and the State of Florida
Introduced in the Senate by Marco Rubio and Rick Scott and in the U.S. House of Representatives by Elise Stefanik (R) and Ted Deutch (D), the bipartisan Canadian Snowbird Act will allow Canadian visitors to remain in the U.S. for eight months (up from the current six months). Currently, Canadian citizens who remain in the U.S. for longer than six months are considered by law as U.S. residents, requiring them to pay federal income tax on any income earned that year, regardless of which country the income was earned in.
More specifically, the bill states that Canadian visitors, over the age of 50, who own or rent a U.S. residence can remain in the country an extra 240 days per year without paying taxes. Importantly, the bill would prohibit these visitors from working for American employers during their time in the U.S., ensuring that they do not take any American jobs. Also, they would be prohibited from receiving various forms of public assistance.
According to the Canadian Embassy, during the last five years, these visitors contributed an average of $6.5 billion a year to Florida’s economy (This figure includes taxes.) “Tourism is a crucial part of Florida’s booming economy, creating and supporting thousands of jobs all across the Sunshine State … The bill would be a huge boost to the state’s economy …,” Senator Marco Rubio said in a statement.
Canada provides more visitors the U.S. than any other country. These visitors purchase, on average, $13.1 billion of U.S. residential real estate each year.
The Sun Sentinel reports Canadians are Florida’s top international visitors, with about 3.5 million Canadians visiting our state in 2018 alone. “The Canadian Snowbird Association estimates that 350,000 Canadians spend three to six months in Florida, while another 100,000 send between one and three months in the state.”
And according to The Hill, the Canadians tend to have higher disposable incomes, and provide a sustained economic benefit over the course of the winter, both by spending money and paying sales and property tax. Needless to say, they also spend money when shopping, eating in our restaurants, paying entry fees to cultural and sporting events, etc. Also, as homebuyers and renters, they help keep the real estate market strong.
On the national scale, Canadian visitors spent $20 billion in 2016, and a disproportionate four billion in the state of Florida (not including taxes)..
“This bill is a win-win for people on both sides of the border,” says Karen Huestis, president of the Canadian Snowbirds association.
I couldn’t agree more.