Development Charges Overview
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Frequently Asked Questions About Development Charges
Development charges are fees imposed on land development and redevelopment projects to help pay for the capital costs of infrastructure that is needed to service new development.
Council of the City of Toronto adopted its DC Bylaw 1347- 2013 on October 11, 2013 in accordance with the requirements of the Development Charges Act, 1997 and related Regulations. The City’s DC bylaw was amended in 2015 to include costs associated with the Scarborough Subway Extension.
Development charges imposed under the bylaw are calculated, payable and collected on the date that an above grade building permit under the Building Code Act is issued in relation to a building or structure on the land to which the development charge applies.
Where a development charge applies to land in relation to which a building permit is required, no building permit will be issued until the development charge has been paid in full.
Development charges help pay for growth-related capital costs for the following municipal services:
- Spadina Subway Extension
- Roads and Related
- Sanitary Sewer
- Storm Water Management
- Parks and Recreation
- Subsidized Housing
- Medical Services
- Development-Related Studies
- Civic Improvements
- Child Care
- Pedestrian Infrastructure
You may be required to pay development charges for land development or redevelopment projects, if you are:
- Constructing a new building
- Making an addition or alteration to an existing building that increases the number of residential units or the non-residential gross floor area
- Redeveloping a property or making interior alterations that result in a change of use to all or part of a building
Statement of the Treasurer
The Treasurer’s Annual Statement, identifying opening and closing balances and development charges reserve fund transactions during the year, may be viewed by the public at toronto.ca
or in the offices of the City Clerk at 100 Queen Street West, Toronto, Ontario, during regular business hours.
Indexing and phase-in development charges imposed under the bylaw are adjusted annually, without an amendment to the By-law on February 1 of each year, commencing February 1, 2014, in accordance with the most recent annual change in the Statistics Canada Quarterly
Capital Expenditure Price Statistics, Catalogue Number 62-007-X.
Adopted development charges rates will be phased-in over the period November 1, 2013 to February 1, 2016. Consult the By-law for details.
Exemptions provided in the By-law and/or the Act include:
- Industrial uses, as defined
- Non-profit housing, as defined
- The City or a local board thereof as defined in the Act
- A board of education
- The creation of an additional dwelling unit, under the restrictions of 2 (3) (b)of the Act
- Land, buildings or structures used or to be used for a public hospital receiving aid under the Public Hospitals Act
- Land, buildings or structures owned by and used, or to be used, for a college or university as defined in section 171.1 of the Education Act
- Land, buildings or structures used or to be used for a place of worship, as defined,or for the purpose of a cemetery or burial ground
- Temporary sales offices or pavilions associated with the sale of new residential development to the public
- Land, buildings or structures for which the City has given final approval for a grant under the Imagination,Manufacturing, Innovation and Technology Financial Incentives Program adopted pursuant to a Community
- Improvement Plan within a Community Improvement Plan Area, as designated under section 28 of the Planning Act
- Accessory uses not greater than 10square metres
- Dwelling rooms within a rooming house
Consult the By-law and the Act for the full listof exemptions.
Education Development Charges
The City of Toronto collects education development charges on behalf of the Toronto Catholic District School Board (TCDSB), as required by the Education Act. The TCDSB is responsible for setting the education development charge rates and applicable policies. Please review the Education Development Charges By-law at tcdsb.org.