Why are PILT not paid for third party tenants in Crown properties?
A. Under the Payments in Lieu of Taxes Act, federal property – either occupied or vacant – is only eligible for PILT when it is under the administration and control of a minister of the Crown. Therefore, when the Crown grants an interest in its real property, such as a lease, to a third party occupant, it ceases to be federal property under the Act therefore no PILT is paid.
