ontario regulation 300/25

made under the

City of Toronto Act, 2006

Made: November 24, 2025
Filed: December 10, 2025
Published on e-Laws: December 10, 2025
Published in The Ontario Gazette: December 27, 2025

Amending O. Reg. 121/07

(TRADITIONAL MUNICIPAL TAXES, LIMITS AND COLLECTION)

1. Subsections 12 (2) to (7) of Ontario Regulation 121/07 are revoked and the following substituted:

(2) If the City is eligible to receive a payment in lieu of taxes described in subsection (3) in respect of a property for a year, the City shall distribute, in accordance with subsection 257.8 (2) of the Education Act, an amount determined as follows:

1.  Calculate the school taxes that would be payable if the property were taxable by multiplying the assessed value of each portion of the property that is classified in a separate property class by the applicable school tax rate for that portion. For a payment in lieu of taxes described in paragraph 2 of subsection (3), include only those portions of the property in the residential, farm, multi-residential or new multi-residential property class prescribed under the Assessment Act.

2.  Calculate the total taxes that would be payable if the property were taxable by multiplying the assessed value of each portion of the property that is classified in a separate property class by the applicable municipal and school tax rates for that portion.

3.  Determine the sharing ratio by dividing the total of the amounts determined under paragraph 1 by the total of the amounts determined under paragraph 2. The sharing ratio is to be calculated to six decimal places.

4.  The amount that must be distributed by the City is the amount that results from multiplying the payment in lieu of taxes received by the City in respect of the property by the sharing ratio determined under paragraph 3.

(3) The payment in lieu of taxes referred to in subsection (2) is a payment in lieu of taxes that meets one of the following conditions:

1.  It is paid under subsection 4 (3) of the Municipal Tax Assistance Act in respect of any property.

2.  It is paid under subsection 84 (2) or (5) of the Electricity Act, 1998 in respect of a property in the residential, farm, multi-residential or new multi-residential property class.

(4) The City shall retain the following payments in lieu of taxes for school purposes and not distribute them to school boards:

1.  Payments in lieu of taxes based on the tax rates set out in Ontario Regulation 392/98 (Tax Matters — Taxation of Certain Railway, Power Utility Lands) made under the Education Act.

2.  A payment in lieu of taxes other than one that meets one of the conditions in subsection (3).

2. Section 13 of the Regulation is revoked.

3. Subsection 14 (1) of the Regulation is amended by striking out “sections 12 and 13” in the portion before paragraph 1 and substituting “section 12”.

Commencement

4. This Regulation comes into force on the later of January 1, 2026 and the day this Regulation is filed.

Made by:

Peter Bethlenfalvy

Minister of Finance

Date made: November 24, 2025