Public Services and Procurement Canada
Details on transfer payment programs: 2024 to 2025 Departmental Results Report

Details on transfer payment programs:

Payments Instead of Property Taxes to Local Governments Program

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 Program 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 Program.

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 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 costs of local government.

Findings of audits completed in 2024 to 2025:

Not applicable

Findings of evaluations completed in 2024 to 2025:

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 2024 to 2025:

Canadian taxing authorities that host federal properties and receive Payments in Lieu of Taxes (PILT) are paid promptly and in line with scheduled due dates. Each final payment is accompanied by a letter and report detailing the payment calculations, contact information for the relevant PILT Regional Office, and instructions on how to request a review by the PILT Dispute Advisory Panel if there is a disagreement over the payment amount.

Financial information (dollars):

Payment in lieu of taxes to municipalities and other taxing authorities.

Financial information by type of transfer payment (in dollars)

Type of transfer payment	2022 to 2023 actual spending	2023 to 2024 actual spending	2024 to 2025 planned spending	2024 to 2025 total authorities available for use	2024 to 2025 actual spending (authorities used)	Variance (2024 to 2025 actual minus 2024 to 2025 planned)
Payment in lieu of taxes to municipalities and other taxing authorities	557,325,806	624,024,394	614,457,602	632,181,670	632,181,670	17,724,068
Recoveries from custodian departments	(612,065,895)	(572,731,632)	(614,457,602)	(622,271,212)	(622,271,212)	(7,813,610)
Total grants	(54,740,089)	51,292,762	0	9,910,458	9,910,458	9,910,458
Total contributions	0	0	0	0	0	0
Total other transfer payments	0	0	0	0	0	0
Total program	(54,740,089)	51,292,762	0	9,910,458	9,910,458	9,910,458

Explanation of variances

Under the statutory authority of the Payments in Lieu of Taxes Act, Public Services and Procurement Canada (PSPC) administers the PILT Program on behalf of other government departments. The PILT issued by PSPC on behalf of other government departments are subsequently recovered from them. The variance between planned spending and actual spending is due to a timing difference between when a payment in lieu of taxes is issued to municipalities and when the cost is recovered from other government departments.