Development Tax and Redevelopment Tax Grant Regulations

The Development Tax and Redevelopment Tax Grant Regulations provide guidelines for municipalities in Canada to receive grants from the federal government in lieu of paying development taxes or redevelopment taxes on federal property. According to these regulations, a defined area is an area within a municipality where a development tax or redevelopment tax is levied. The tax is payable by a taxable owner of real property and is calculated based on factors such as frontage, area, and other attributes of land or buildings.

The regulations state that the federal government may pay a grant to a municipality in lieu of the tax, subject to certain conditions. The amount of the grant is determined by the Minister, taking into account the total proceeds from development taxes or redevelopment taxes in the defined area. If the government has financed services related to the construction or reconstruction of a road or other capital service in that area, a portion of the grant may be reduced.

These regulations apply to development taxes and redevelopment taxes on federal property that would have become due and payable on or after January 1, 1974. The goal of these regulations is to help municipalities cover the costs associated with developing and maintaining their infrastructure, while also ensuring that the federal government's financial assistance is used effectively.