If a local authority is determined to be a municipality, it has the benefit of municipal status for all GST/HST purposes. For example, a paramunicipal organization can apply to be determined to be a municipality. ....
If a person is designated to be a municipality for particular exempt municipal services that it supplies, the person is considered to be a municipality only for the purposes of the public service bodies' rebate and only for those particular exempt municipal services. The designation does not apply to the organization as a whole.
The designation allows the person to apply for a rebate of the GST/HST using the municipality rebate factor, but only for the tax paid or payable on purchases used in the course of supplying the exempt municipal services for which the organization was designated.
