A bill introduced by U.S. Senator Marc Rubio would allow Canadians aged 50 and over to stay in the United States for eight months instead of six.
Every winter, over one million Quebeckers migrate to the warmer weather down in Florida. If this bill is adopted, it will enable the State of Florida to benefit from higher consumer income.
Martin Caron, Senior Manager, International Tax and Mobility, emphasizes: “If money is spent in another juridiction, the taxes are spent over there and not here.”
Caron specifies that this bill should technically not have an impact on income taxes, but rather on sales taxes.
“Take the two extra months multiplied by the number of people who will stay longer in Florida, and both Quebec and Canada will be losing out on sales tax income.”
Let’s not forget that while the U.S. law might change in this respect, Quebec legislation, especially with regard to health care, will remain unchanged for the time being.
Caron mentions that, under the Quebec Health Insurance Plan, Quebeckers cannot stay outside of the province for a period longer than six months. If the U.S. bill is adopted, some Quebec provisions will have to be adjusted for tax purposes, but nothing has been confirmed in this regard.
If you’re planning to retire under the sun, call on one of our international tax and mobility experts.