Welcome to the Payments in Lieu of Taxes (PILT) Web Page
The Government of Canada as a Property Owner in Your Municipality
Most Canadians are familiar with some of the types of property owned by the Government of Canada and federal Crown corporations - office buildings, harbours, prisons, national parks, RCMP detachment buildings and post offices, for example.
Almost all of these properties benefit from the valuable services provided by Canadian municipalities. The Government of Canada firmly supports the principle that, as a property owner, even though it is exempt from taxation, it should share the cost of local government equitably with other property owners in the community. The Government of Canada makes a payment in lieu of taxes every year to local governments where its properties are situated.
All in all, Public Works and Government Services Canada distributes more than $460 million a year to about 1,300 taxing authorities where property owned by government departments is situated. In addition, federal Crown corporations such as the Canada Post Corporation and the Canadian Broadcasting Corporation make payments in lieu of taxes on their property in the same way, adding another $200 million to the federal contribution.
Authority to make these payments is granted to the minister of Public Works and Government Services Canada by the Payments in Lieu of Taxes Act, which came into force on December 2, 2000, marking the most recent of a number of expansions and refinements of the legislation first passed in 1950. Access the PILT Act.
Key Program Features
The government's Payments in Lieu of Taxes Program emulates private sector practice in all essential respects:
- The payments are calculated on the basis of the values and rates which would, in the opinion of the minister, apply to federal property if it were taxable. This ensures that the amount paid is essentially equivalent to the amount which would be paid by a taxable owner;
- The payments are made according to the schedule established by the municipality and additional amounts are paid if payments are late;
- The government makes good on tax defaults by its tenants; and
- Taxing authorities which disagree with the amounts of their payments may request a review by the Payments in Lieu of Taxes Dispute Advisory Panel, which is established by law to advise the minister of Public Works and Government Services in the exercise of discretion in regard to the values and rates used in the calculation. Access Dispute Advisory Panel.
PILT Application On-Line
Canadian taxing authorities that host federal property belonging to departments of the Government of Canada may apply for their payments in lieu of real property taxes on-line. Access PILT Applications On-line.
The Valuation Advisor
The Valuation and PILT Directorate publishes an annual newsletter on topics of interest to our clients. View the most recent issue of Valuation Advisor.
