What We Do
Purpose
Our primary purpose is to deliver the PILT Program on behalf of
the federal government. However, we also offer additional services
to federal departments and a full range of related services to federal
Crown corporations and agencies that are themselves accountable
for their own payments in lieu of taxes to taxing
authorities across Canada.
Our program vision states:
"Our vision is to be recognized as trusted advisors and leaders in valuation
and payments in lieu of taxes, by adding value and achieving results for Canadians through our
expert program management and delivery and strategic partnerships"
National Services
- Program Management including financial management and accountability
- Policy Development including legislation and regulatory review and management
- Compliance Monitoring - quality control through regional monitoring
Strategic Management Services
Valuation Services
PILT Administration Services
Other Services
Strategic Management Services
Database Management
Clients find the PILT federal property database - widely recognized
as one of the most complete of its kind - a valuable reference tool.
Although designed to support the efficient management of payment
in lieu of taxes and not as a comprehensive real property inventory
management system, this database contains substantial information
on most federal custodial properties. No other government-wide system
tracks real property to the same level of detail. The PILT database
contains all federal properties eligible for a PILT payment, and
can be searched using the custodian's building number, organizational
subdivisions, billing centres or other relevant variables. Our clients
receive standard, detailed inventory reports on a regular basis.
We also provide customized reports to meet specific needs.
PILT Forecasting and Estimating
To manage limited financial resources, federal custodian departments
need accurate cost forecasts and current-year estimates for all
expenditures, including PILT. We provide such PILT forecasts through
a unique real-time, three-layer estimating system, which allows
our professionals to input data as it becomes available, at the
provincial, municipal and property levels. Data for these estimates
is collected from within PWGSC, direct from custodian departments,
from industry, municipal and provincial contacts, and from regular
monitoring of significant local media. We then provide reports,
with detailed, timely information, to custodian departments at four
strategically selected points in the federal budgetary and planning
cycle. In addition, we provide ad-hoc reports upon request.
Work Planning
In consultation with custodian departments, we consolidate and analyze
information from a variety of in-house and private sources to ensure
that the properties with the highest potential for PILT savings
are identified for review. Work planning includes a detailed analysis
of property tax assessment changes, consideration of newly purchased
or constructed properties, and comparison to tax payments for similar
taxable property.
Development of Policies and Best Practices
Our thorough knowledge of property valuation, assessment and taxation
theory and practices, combined with effective communications with
key stakeholders, has allowed us to create prudent national PILT
policies. These policies ensure the PILT Program is fair, equitable
and predictable for all stakeholders. This allows custodian clients
to successfully manage their PILT expenditures, while ensuring professional
and effective federal/municipal relationships.
Management of Intergovernmental Relationships
PILT has built professional and effective relationships with municipalities,
provinces and other taxing authorities that host federal departmental
properties. We thereby create good will and a positive community
image that benefits our clients. Through frequent, effective and
timely communications with taxing authorities, we ensure custodian
departments receive equitable services and that both municipalities
and the custodian departments enjoy a surprise-free environment.
At a national level, PWGSC maintains formal relationships and participates
in conferences with organizations such as the Federation of Canadian
Municipalities, assessment authority organizations, and the Canadian
Property Tax Association.
Municipal Services Consulting
We provide advice and support when a custodian department seeks
access to a level of municipal services comparable to that offered
to private taxpayers. This will include a study of services provided
to private taxpayers and an evaluation of the service levels that
can be expected. In conjunction with the custodian department, we
will participate in negotiations with municipalities to obtain these
services. If a taxing authority is unwilling or unable to provide
a required service that is available to taxable property owners,
we will consult with our client and calculate a PILT reduction commensurate
with the cost of replacing the service.
Strategic Advice
To maximize their investment in federal real estate, our clients
require detailed information about the estimated financial impacts
of all proposed real estate decisions. PILT may be affected by many
factors including a property's heritage designation, construction
type, date of purchase or construction, property use, contamination
issues and much more. PILT valuation professionals, drawing upon
their experience in valuation, taxation, PILT practices and legislation,
can provide advice on PILT and property taxes and impacts associated
with various real estate options faced during the life cycle of
a real property.
Valuation Services
Establishing Property Value
Our business is to establish fair and equitable value on all federally
owned property for PILT purposes. We therefore have a thorough knowledge
of property valuation, assessment and taxation jurisprudence, and
the application of assessment equity provisions.
Our clients can be confident that PILT payments will not exceed
amounts that are fair and equitable. In many cases, our professionals
meet with assessment officials before the return of the assessment
roll to the municipalities. This strategy allows us to discuss property
values with assessors, without having to contend with established
values placed on assessment rolls and used by municipalities to
produce their budgets. As a result we can ensure fair, equitable
and appropriate payments by custodian departments, while providing
a fair and predictable payment to taxing authorities. We have access
to a full network of private-sector appraisers and valuation experts
in the field of property assessment to assist us.
Defending Valuation and PILT Challenges at the Dispute Advisory Panel
While we make every effort to reach consensus on fair payments in
lieu of taxes, we must sometimes defend the federal position before
the Payments in Lieu of Taxes Dispute Advisory Panel. The panel
is authorized under the Payments in Lieu of Taxes Act to hear disputes
related to value for PILT purposes, or the PILT amount paid. The
panel makes recommendations to the Minister of PWGSC for federal
departmental properties, and to the head of the Crown corporation
or agency responsible for real property under its custodianship.
We undertake all necessary case preparation, including enlisting
legal assistance if required, to defend our positions.
PILT Administration Services
Application Review and Processing
PILT has the structures in place to efficiently process large volumes
of payment applications from taxing authorities. We review all such
applications for accuracy, completeness and compliance with the
requirements of the PILT Act. Our reviews check to ensure that properties
applied upon are federally owned and meet the requirements for payment
eligibility.
Payment and Accounting
Payments in lieu of taxes are made in accordance with the different
municipal tax payment schedules. Thousands of individual transactions
must be made on time to avoid late payment charges. PILT has tracking
systems to ensure that all payment dates are met. Employing specifically
developed computer applications, PILT tracks all payments and provides
custodian departments and central agencies with detailed payment
reports.
Other Services
PILT is uniquely qualified to provide consultative advice to clients
concerning matters related to property valuation and assessment,
federal and provincial property tax and development charges legislation,
and PILT administration. Some of our specific areas of expertise
include:
PILT Management Services to Crown corporations and agencies
PILT has the expertise to provide full PILT management services,
on a cost effective, fee basis, to Crown corporations and agencies.
Such services could include: strategic PILT planning advice, property
review, establishment of applicable property values and tax rates,
discussions with tax assessors, tax mitigation calculations, property
inventorying, detailed forecasts and reporting, recommendations
for payment, and defence of values before the Dispute Advisory Panel.
Our experienced staff will ensure that all potential savings are
realized, provide expert defence of appeals by municipalities, help
avoid late payment charges, and allow Crown corporations and agencies
to concentrate on their core business.
Realty Taxes and Leasing Consultancy
In many jurisdictions within Canada, calculation of lease escalations
has become increasingly complex, requiring an in-depth knowledge
of the pertinent provincial legislation. Issues such as tenant capping,
shortfall recovery and clawback provisions require detailed calculations.
Working in partnership with the Appraisals Directorate, we have
the experience and industry contacts needed to ensure that payments
on federally leased accommodation are correct.
Training and Seminars
PILT can provide speakers for seminars, or conduct training or information
sessions to develop an organization's understanding of effective
PILT management practices.
Consultancy to Foreign Governments
Supporting federal government initiatives on knowledge transfer
and assistance to emerging world economies, PILT has actively shared
its experience on property taxation and payments in lieu of taxes
with emerging nations that wish to develop market-based economies.
We have partnered with private organizations to assist these nations
develop real property taxation systems and define the role that
national/state governments can play in local taxation regimes.
|
