Public Services and Procurement Canada
Details on transfer payment programs: 2023 to 2024 Departmental Results Report

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 Payments in Lieu of Taxes Act was last amended on September 1, 2023.

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 Payments 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 fair and equitable administration of payments to local taxing authorities on behalf of relevant federal custodian departments and agencies. For more information, please 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 2023 to 2024

Not applicable.

Findings of evaluations completed in 2023 to 2024

No evaluation took place during the reporting year. The program Payments Instead of Property Taxes to Local Governments is not included in the departmental evaluation plan for fiscal year 2024 to 2025 to fiscal year 2028 to 2029.

Engagement of applicants and recipients in 2023 to 2024

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: 2021 to 2023 actual spending, 2023 to 2024 planned spending, 2023 to 2024 total authorities available for use, 2023 to 2024 actual spending, and variance for transfer payments

Table 1: Financial information (in dollars)

Type of transfer payment	2021 to 2022 actual spending	2022 to 2023 actual spending	2023 to 2024 planned spending	2023 to 2024 total authorities available for use	2023 to 2024 actual spending (authorities used)	Variance (2023 to 2024 actual minus 2023 to 2024 planned)
Payments to municipalities and other taxing authorities	582,912,253	557,325,806	590,156,881	624,024,394	624,024,394	33,867,513
Recoveries from custodian departments	(580,524,221)	(612,065,895)	(590,156,881)	(572,731,632)	(572,731,632)	17,425,249
Total other types of transfer payments	n/a	n/a	n/a	n/a	n/a	n/a
Total program	2,388,032	(54,740,089)	0	51,292,762	51,292,762	51,292,762