Payments in Lieu of Taxes (PILT) are a set amount of funding paid for by hospitals,
universities and colleges located in the municipality to compensate for municipal services. The
Assessment Act requires all real property in Ontario to be subject to assessment and taxation.
However, land owned by the federal or provincial government, public education institutions, and
public hospitals are considered as an "exemption". To compensate for the loss in
taxation revenue, section 323 of the Municipal Act, 2001, provides municipalities with the
authority to levy an amount payable. Thus, a municipality can receive payment for services
provided from the province for a full-time student enrolled in a university/college, a resident
in a correctional facility, and a patient in a provincial rated bed.
The Province of Ontario established in 1987 that the PILT rate would be $75 per student and
per hospital bed. In 2010, the Trillium Health Centre (Mississauga site), University of Toronto
Mississauga and Credit Valley Hospital paid a total PILT amount of $834,900. Council has asked
that the PILT rate be increased to $240 to reflect the new financial realities that the City
faces. With an increase of the PILT rate from $75 to $240, the City would receive $2,671,680;
an increase of $1.8 million in funding. This funding is significant for Mississauga and
provides relief from the pressures of inflation and increases to other service
The City of Mississauga has lobbied the provincial government for changes to the
legislation. Most recently, Council passed Resolution 0069-2011 to request the Minister of
Municipal Affairs and Housing, and the Minister of Finance to increase the PILT rate. View
links below for more information on PILTs.
Minister of Finance response to Mayor