Payment in Lieu of Property Tax
Payments in lieu of property taxes are made by the corporations listed below for the lands they own containing transformer station structures and/or generating station structures. The payments are made in lieu of additional municipal and school taxes. These payments are applied to retire the stranded debt associated with the restructuring of Ontario Hydro.
If a generating station building or structure owned by one of the corporations on January 1, 2000 is subsequently disposed of, the payment in lieu continues to apply to any subsequent owner. Hydro-electric generating station properties are no longer subject to the property tax payment-in-lieu, effective January 1, 2001.
Who Pays Payment-in-Lieu of Property Tax:
- Ontario Power Generation Inc. and its subsidiaries;
- Hydro One Inc. and its subsidiaries;
- every municipal electricity utility.
See Gross Revenue Charge for further information.
Reporting & Remitting Tax
Hydro One Inc. and every municipal electricity utility are required to make:
- an interim payment, equal to 50% of the amount payable for the immediately preceding year, by April 16; and
- a final payment, equal to the total amount payable for the current year, minus the interim payment, by October 16, along with the annual payment-in-lieu return.
Ontario Power Generation Inc. makes monthly payments by the 16th of each month:
- for the first nine months, the amount of the monthly payment is 1/12 of the amount payable for the immediately preceding year;
- for the remaining three months, the payment is equal to 1/3 of the total amount payable for the year, minus the payments made in the first nine months.
