Province provides budget relief for Quinte West with PILT mitigation funding

BAY OF QUINTE The Ontario government is providing the City of Quinte West a one-time payment of $3,032,342 to offset revenue shortfalls due to changes to payment in lieu of taxation (PILT) funding for federal properties located in the municipality impacting the 2021-2023 tax years, Todd Smith, MPP for Bay of Quinte announced today.

The federal government made changes in 2021 to provide PILT payments below the regulated education tax rates that would have applied if the government paid taxes on CFB Trenton properties. Based on the 2021 taxation year, Ontario recognized Quinte West lost 1.11 per cent of its own-source revenue annually due to the shortfall.

“Our government is making the City of Quinte West whole for lost revenue over the past three years due to these federal changes as they transition to the new system,” said Smith. “This new funding will allow the City to invest in services and infrastructure while holding the line on taxation for our shared constituents.”

Quinte West Mayor Jim Harrison welcomed the news.

“The City of Quinte West appreciates the efforts of the Province to help offset the financial impacts incurred by the City over the last three years due to changes to the payment in lieu of taxes (PILT) program,” said Harrison. “The PILT monies are essential for the City to fund critical capital infrastructure projects and provide quality services for Quinte West residents each year. I give my thanks to MPP Todd Smith for working with city staff to secure this crucial funding.”

In August, Smith and Minister of Finance Peter Bethlenfalvy had a productive meeting with Mayor Harrison and a delegation from Quinte West regarding the PILT. Today’s announcement reflects a commitment made to provide relief.

The PILT mitigation payments will be delivered to Quinte West later this month, ensuring this funding is available for 2024 budget deliberations.