Development charge payments, credits and exemptions

The City calculates development charges during the building permit application process.

You may need to pay development charges if you are:

  • Building a new home or adding residential units
  • Redeveloping existing housing by increasing the number of residential units
  • Building new industrial or non-industrial space
  • Redeveloping existing non-residential space by increasing the gross floor area (GFA)

The City and the Region of Peel determine if an industrial or non-industrial charge rate applies to a specific development. These rates are set according to the development charges by-laws.

This decision is not based on the zoning of the property. The Employment Zones specified in the Zoning By-law permit a wide range of property uses. Not all of them are defined as industrial in the development charges by-laws. These include restaurants, offices, banquet halls, and commercial schools. For example, if you’re constructing a new restaurant in an E3, Industrial zone, you would need to pay the non-industrial charge rate.

Speculative industrial buildings are developed before there is a confirmed tenant. Once a tenant is occupying the building, the City and the Region of Peel will decide which type of development charges will apply.

Because the use of the building is unknown during construction, you can pay development charges at the industrial rate.

1. Submit a letter of credit and acknowledgement

When you pay your fees, you must file a letter of credit. This letter must show the difference in the amount between the industrial and non-industrial rates for the City and the Region of Peel.

The City will hold the letter of credit up to 36 months to give the property owner time to lease the building. If the building is not occupied within 36 months, the letter of credit will be drawn upon.

The property owner will also be required to sign and submit the Letter of Credit Acknowledgement.

2. City staff will inspect the building

Once the building is occupied, City staff will conduct an inspection. They’ll determine if the use of the building is industrial or non-industrial.

If the inspectors determine the use of the building is determined to be industrial, we’ll return the letter of credit.

If the use is determined to be non-industrial, we’ll recalculate the development charges. The non-industrial rate in effect at the time the supplementary payment is due will apply. Any previous payments you made at the industrial rate will be deducted from your total amount owing.

Refusing to pay additional charges

If a property owner refuses to pay additional development charges, the outstanding balance will be added to the property tax roll.

You’ll need to submit a Supplementary Information Form. City staff will use this to determine if your application is subject to development charges and calculate the total amount owing.

You’ll receive an invoice that outlines the charges that apply to your development project and the total amount owing. The total charge includes development charges for:

  • City of Mississauga (including the stormwater management development charge)
  • Region of Peel
  • GO Transit (for residential development applications only)
  • Peel District School Board
  • Dufferin-Peel Catholic District School Board

When and how to pay development charges

You must pay development charges before you receive your building permit.

Pay development charges by electronic funds transfer or wire transfer.

The Development Charges Act allows the following types of development to pay in annual installments:

  • Rental housing
  • Institutional development
  • Non-profit housing

To make deferral payments you must have a deferral agreement. Deferral payments are subject to interest rates approved by City Council and interest rates approved by Regional Council.

You could also enter into an early payment agreement. This agreement allows you to make one lump sum payment for all development charges without interest.

If you have questions or concerns about the calculation of a development charge, please contact us. Call 311 (905-615-4311 outside City limits) or email customer service.

If we cannot resolve your concerns, you are afforded certain rights under Section 20 of the Development Charges Act.

You must submit your complaint in writing to City Council no later than 90 days after the day the development charge, or any part of it, is payable.

You must state the complainant’s (your) name, address and reason for the complaint, if:

  • The amount of the development charge was incorrectly determined
  • A credit is available to use against the charge
  • The credit amount or the service the credit applied to was incorrectly determined
  • There was an error in the way the Development Charge By-law was applied

Credits and exemptions

Any available exemptions or credits will be determined during the review of your application. We cannot determine if exemptions or credits apply before you submit a building permit application to the City.

Demolition credit

A demolition credit may apply if residential units or non-residential space is demolished and replaced. This credit depends on the expiration dates listed in the applicable development charges by-laws.

Industrial expansion exemption

An industrial expansion credit may apply to the redevelopment of existing industrial buildings.

Secondary unit exemption

A secondary unit exemption may apply to the development of residential buildings.

Contact us

For questions about the City’s development charges, please call 311 (905-615-4311 outside City limits) or email customer service.

For questions related to the Region of Peel’s development charges, please contact 905-791-7800 ext. 4439.

For questions about education development charges, please contact:

  • Peel District School Board: 905-890-1010 ext. 2216
  • Dufferin Peel Catholic District School Board: 905-890-0708, ext. 24440