Development charges are used to increase infrastructure for residents to use. Infrastructure such as libraries, community centres and roads. The City of Mississauga collects development charges on behalf of the City, the Region of Peel, Go Transit, the Peel District School Board, and the Dufferin-Peel Catholic District School Board.
Development Charges apply to:
New residential dwelling unit(s)
Additions to existing residential units which do not result in an increase in units, garages and accessory structures such as sheds are exempt
A demolition credit applies in cases where a unit is demolished and replaced subject to the expiration of the demolition credit set out in the various development charges by-laws
An exemption may apply in cases where an additional unit is added to an existing residential building and where permitted under the City of Mississauga Zoning By-law
The increase in gross floor area of all non-residential buildings
An industrial expansion credit may apply- see "Industrial Expansion Credit Information" below
Non-Residential Use Determination
(industrial and non-industrial)
Both the City of Mississauga and the Region of Peel have two non-residential rates, industrial and non-industrial.
The City of Mississauga's and the Region of Peel's Development Charges By-laws set out the criteria for the determination of whether a use (which is to be located within a building for which a building permit application has been submitted) is industrial or non-industrial for the purpose of calculating the development charges payable.
The industrial rate applies to uses that involve the manufacturing of raw goods or warehouse/distribution centers and truck terminals.
The non-industrial rate applies to all other uses, such as:
Motor vehicle repair
The zoning of a property does not determine whether industrial or non-industrial development charges are payable.
The Employment Zones in the City of Mississauga Zoning By-law permit a wide range of uses and not all of them are considered to be industrial, as defined in the development charges by-laws. Examples include restaurants, offices, banquet halls, and commercial schools. For example, a new restaurant building that is to be constructed in an E3 zone would be required to pay the non-industrial development charge rates.
In order for the industrial rates to apply, the primary use of the property must be for industrial purposes. A building may be used as a sales office but a portion of the building may be used to store supplies or products. As the primary use of the building is an office, the building is not deemed to be a warehouse.
The City of Mississauga and the Region of Peel will make the determination, in accordance with the Development Charges By-laws, as to whether the use is subject to industrial or non-industrial development charges.
Region of Peel - Change in Use
In cases where a non-industrial use (e.g. school, recreational, place of religious assembly, etc.) proposes to occupy a space that was previously used for industrial purposes, the Region of Peel requires that the difference between the current industrial and non-industrial development charge rates be paid prior to the issuance of a building permit. For further information please contact the Region of Peel at
Speculative Industrial Buildings
and letters of credit
Where a speculative industrial building is proposed, which could be used for industrial purposes aspeculative industrial building for which there are no tenants, the final determination as to whether industrial or non-industrial development charges are payable is made once the building is occupied.
Under the City of Mississauga and The Region of Peel's development charges by-laws, where the use of the building is unknown, development charges can be paid at the industrial rate. A letter of credit in the amount of the difference between the City of Mississauga and the Region of Peel's industrial and non-industrial rates must be filed at the time of payment.
The City will hold the letter of credit up to 36 months to provide the property owner with time to lease the building
If the building is not occupied within 36 months, the letter of credit will be drawn upon
City staff will conduct an inspection of the building once it is occupied to determine whether the building is being used for industrial or non-industrial uses. If upon occupancy, the building is determined to be industrial, the letter of credit will be returned
If the building is deemed to be non-industrial, the non-industrial development charges will be re-calculated at the rate in effect at the time that the supplementary payment is due - the monies previously paid at the industrial rate will be deducted. This could be higher than the amount of the letter of credit
Development charge rates are indexed semi-annually and as new development charges by-laws are passed, the rates will increase - the monies previously paid at the industrial rate will be deducted.
The property owner will have the option of submitting a cheque for the entire amount of the additional payment and having the letter of credit returned or the letter of credit will be drawn upon and a cheque may be submitted for any additional monies owing.
In the event that a property owner refuses to pay the additional development charges, any outstanding balance will be added to the property tax roll, as set out in the Development Charges Act.
The property owner will also be required to sign and submit an acknowledgement stating that the owner is aware of all the terms of paying development charges in connection with a speculative building