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 enacted Development Charges Bylaw No. 515-2018 on April 27, 2018 in accordance with the requirements of the Development Charges Act, 1997 and related Regulations.

 

View the City’s current development charge rates.

Development charges imposed under the bylaw are calculated, payable and collected on the date that a building permit under the Building Code Act, 1992 is issued in relation to a building or structure on the land to which the development charge applies.  In some cases, agreements may change the payment timing.

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
  • Transit
  • Roads and Related
  • Water
  • Sanitary Sewer
  • Storm Water Management
  • Parks and Recreation
  • Library
  • Subsidized Housing
  • Shelter
  • Police
  • Fire
  • Paramedic Services
  • Development-Related Studies
  • Civic Improvements
  • Child Care
  • Health
  • 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

For a fulsome list of exemptions, reference should be made to the bylaw.

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.

Development charges rates under the City’s current Development Charges Bylaw are adjusted for phase-in and indexing.  Adjustments for indexing are on November 1 of each year in accordance with the change in the Statistics Canada Quarterly Capital Expenditure Price Statistics, Catalogue Number 62-007-X.

The adopted rates are phased-in over the period November 1, 2018 to November 1, 2020. Consult the bylaw for details.

Exemptions

Exemptions are set out in § 415-6 of the Bylaw and include:

  • Public hospitals, as defined
  • Industrial uses, as defined
  • The creation of an additional dwelling unit, under the restrictions of 2 (3) (b) of the Act
  • Colleges or universities, as defined
  • Places of worship, cemeteries or burial grounds
  • Temporary sales offices or pavilions associated with the sale of new residential development to the public
  • Accessory uses not greater than 10 square metres
  • Dwelling rooms within a rooming house

Consult the Bylaw and the Act for the full list of exemptions.  The owner or applicant is required to provide evidence to the satisfaction of the City that the owner or applicant is entitled to any exemption from the payment of development charges.

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. For more information, please review the Education Development Charges Bylaw at tcdsb.org and the City’s Education Development Charges site.