Payments in lieu of additional municipal and school taxes
Learn about payments that can be made to pay down the remaining stranded debt of the former Ontario Hydro.
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Hydro One Inc., Ontario Power Generation Inc., each of these companies’ subsidiaries, and every municipal electricity utility pay property taxes like every other land owner in Ontario. In addition, these companies make extra payments to the province for the lands they own that contain generating or transformer station buildings or structures.
These extra payments are known as the payments in lieu of additional municipal and school taxes and go towards paying down the remaining stranded debt of the former Ontario Hydro.
New owners of generating or transformer station building or structure
If a generating or transformer station building or structure owned by one of the above companies on January 1, 2000 was sold at a later date, the new owner continues to pay the province the payments in lieu.
Hydro-electric generating stations and wind turbine towers
Hydro-electric generating stations and wind turbine towers do not pay the payments in lieu. However, hydro-electric generating stations do pay the gross revenue charge.
Filing a return and payment
Hydro One and municipal electricity utilities
Hydro One Inc. and every municipal electricity utility are required to make:
- a payment, equal to 50% the previous year’s total amount payable, by April 16
- a final payment for the remaining balance, bringing the amount paid up to the total due for the current year, along with the annual return, on October 16
Ontario Power Generation
Ontario Power Generation Inc. makes monthly payments by the 16th of each month.
- For the first nine months, the monthly payment is 1/12 of the amount payable in the previous year
- For the remaining three months, each payment is 1/3 of the total amount remaining due for the current year. The annual return is due on October 16