27 May 2016 Interpretation 130865—Permit Fees and Municipal Development Charges

The final building or service permit to a land developer is issued by the local municipality, but in many situations the permit cannot be issued without the approval of the land development agreement by the regional municipality. Are the supplies, which are made by the regional municipality, elements of a single supply of a permit exempted under Sch V, Pt VI, s. 20(c)?

In rejecting a single supply submission, CRA stated:

[T]he provision of property and/or services by two or more suppliers generally indicates that multiple supplies are being made, even if the various supplies are provided together. …

[A] requirement that the fees related to the review and approval of a land development agreement be paid in full to the regional municipality prior to the issuance of a permit by a local municipality is not evidence, in and of itself, that the services provided by the regional municipality in connection with those fees are elements of a single supply. Further, many of the fees identified are payment for a separate supply, e.g., approval of a plan amendment or a condominium conversion.

… The review by the regional municipality of the land development agreement is a separate activity from the issuance of a permit by a local municipality.

The final building or service permit to a land developer is issued by the local municipality, but in many situations the permit cannot be issued without the approval of the land development agreement by the regional municipality. In finding that the supplies made by the regional municipality are not exempted under Pt VI, s. 21, CRA stated:

A key condition of section 21… is that the service is "one which the owner or occupant has no option but to receive". We interpret this condition as meaning (in part) standard municipal services that are provided collectively to all owners or occupants of real property… .

… [T]he requirements of land owners to comply with laws and regulations pertaining to land development, and the responsibilities of municipalities to review, examine and inspect land development agreements are not indicative of municipalities making a supply of a municipal service for which owners or occupants of real property have no option but to receive for purposes of section 21 of Part VI of Schedule V.

The final building or service permit to a land developer is issued by the local municipality, but in many situations the permit cannot be issued without the approval of the land development agreement by the regional municipality. Are the fees charged by a regional municipality to the land owner deemed to be consideration for an exempt supply under s. 189.1? After quoting s. 189.1, CRA stated:

[I]t is our understanding that fees are charged for various supplies made by the regional municipality, including pre-draft approval of a Plan Revision, an emergency extension, a condominium conversion, legal administration services, etc. There is nothing in the information provided that would suggest that any of the enumerated fees would meet all of the requirements listed in section 189.1.