Welcome to the Payments in Lieu of Taxes (PILT) Web Page
The Government of Canada as a Property Owner in Your Municipality
The Government of Canada, through its federal departments and Crown corporations and agencies, owns a large inventory of property that includes: office buildings, harbours, prisons, national parks, RCMP detachment buildings and post offices. Most federal properties benefit from the services provided by Canadian municipalities and 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 Payments in Lieu of Taxes Program is administered by Public Works and Government Services Canada. Every year more than $500 million is distributed to approximately 1,250 taxing authorities where property owned by federal 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 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 which was first passed in 1950. Access the PILT Act.
Key Program Features
Payments made under the Payments in Lieu of Taxes Act are based on the principle of fairness respecting both the taxing authorities and the federal government and are equitable in comparison to those made by other property owners.
Payments are calculated on the basis of values and rates which would, in the opinion of the Minister of Public Works and Government Services, apply to federal property if it were taxable.
Payments respect the property tax due dates established by taxing authorities and supplemental payments reflecting interest charges may be made if payments are late.
The federal government should receive equal access to services provided to other property owners by the host municipality.
PILT Application On-Line
Canadian taxing authorities that host federal property belonging to federal departments of the Government of Canada may apply for their payments in lieu of real property taxes on-line. Access PILT Applications On-line.