The PILT Program

Objectives and Principles

The purpose of the Payments in Lieu of Taxes Act is defined in section 2.1 of the Act, “fair and equitable administration of payments in lieu of taxes.”

The payments are based on the principle of fairness respecting both the taxing authorities and the federal government, are equitable in comparison to other property owners and should be predictable for all stakeholders.

The federal government should receive equal access to the services provided to property owners by a host municipality.

Application Process

Taxing authorities that host federal property must submit an application for payments in lieu of taxes to PWGSC. Once an application is received by PWGSC, it is verified, eligibility of the federal property is confirmed, valuation reviews are performed, tax classes and applicable tax rates are confirmed and payments are issued.

Stakeholders and Partners

Taxing Authorities

• Taxing Authorities are the program beneficiaries and payments in lieu of taxes are made to municipalities, school boards, provinces and First Nations governments.
• The Federation of Canadian Municipalities represents the interests of municipalities at the national level.

Assessment Authorities

• Assessment authorities determine assessed values on which taxing authorities base their applications for payments in lieu of taxes.

Federal Custodian Departments and Agencies

• The Minister of Public Works and Government Services makes the payments and is accountable to Parliament for the program.
• Since 1997, each department has been financially responsible for payments made on its property, and is required to reimburse PWGSC the amounts paid on its behalf.

Crown Corporations

• Independent of the Minister Public Works and Government Services' authority, each Crown corporation is fully responsible for its own payments in lieu of taxes program.
• Heads of individual Crown corporations exercise discretion with respect to their payments.