Public Services and Procurement Canada
Details on transfer payment programs of $5 million or more

Name of transfer payment program

Payments Instead of Property Taxes to Local Governments

Start date

1950

End date

Ongoing

Type of transfer payment

Payments in lieu of taxes

Type of appropriation

The Payments Instead of Property Taxes to Local Governments is a statutory program administered under the authority of the Payments in Lieu of Taxes Act.

Fiscal year for terms and conditions

The last major update of the Payments in Lieu of Taxes Act was in fiscal year 2000 to 2001.

Link to departmental result(s)

Canadians, businesses and organizations receive payments on time and revenues are collected for government services in an efficient manner.

Link to the department’s program inventory

Payments Instead of Property Taxes to Local Governments.

Purpose and objectives of transfer payment program

Payments Instead of Property Taxes to Local Governments Program issues payments to taxing authorities under the authority of the Payment in Lieu of Taxes Act. Local governments receive payments in recognition of the services they provide to federal property located in their jurisdictions because the Government of Canada property is exempt from taxation. The program provides payments to local taxing authorities on behalf of relevant federal custodian departments and agencies.

For more information, visit the Payments in Lieu of Taxes for federal properties website.

Results achieved

Local taxing authorities receive fair, equitable and predictable payments on behalf of the Government of Canada as a contribution to the cost of local government.

Findings of audits completed in 2022 to 2023

Nil.

Findings of evaluations completed in 2022 to 2023

No evaluation was planned during the reporting year. It was also determined that the Payments Instead of Property Taxes to Local Governments Program would not be included in the 2019 to 2024 departmental evaluation plan. However, the planning document is evergreen and, if any concerns arise in next year’s planning exercise, Public Services and Procurement Canada will adjust accordingly taking into account government and departmental needs, priorities and risks.

Engagement of applicants and recipients in 2022 to 2023

The recipients of payments in lieu of taxes (PILT), which are Canadian taxing authorities hosting a federal property, receive payments in a timely manner and in accordance with their due dates. Taxing authorities receive a letter and report with each final payment providing them with the payment calculations, the name and coordinates of the PILT regional office as well as instructions on requesting a review before the PILT Dispute Advisory Panel if they disagree with the amount of the payment.

Performance information: 2020 to 2022 actual spending, 2022 to 2023 planned spending, 2022 to 2023 total authorities available for use, 2022 to 2023 actual spending, and variance for transfer payments