Grant-in-Lieu of Property Taxes Program

The purpose of the Grant-In-Lieu Taxes program is to provide limited financial support for approved non-profit organizations, community groups, or municipalities that are providing specified services in the community by forgiving (crediting) non-commercial provincial property taxes. 

Who is eligible?

Non-profit organizations may be eligible for a Grant-in-Lieu of Property Taxes on the non-commercial portion of provincial real property taxes on properties they own or lease from the Province of PEI.

What specific services are eligible?

Property used for the following purposes may qualify if owned by a charitable organization, community group or a municipality: 

Grants will not be paid to service clubs, curling rinks, golf clubs, health centers or organizations that receive other Government financial assistance for their provincial property tax expense.

Note that not every property owned by an applicant will necessarily be eligible for a Grant-in-Lieu of Property Taxes. Each property must be separately identified, and applications will be approved based on the property use. 

How do I apply?

If you wish to apply to the Grant-in-Lieu of Property Taxes Program, you must complete the online application found here (link is also at the end of this page).

Please note that the applicant must provide a copy of the latest available annual financial statements with the application.

You may also apply using the Application for Grant-in-Lieu of Property Taxes (Demande de subvention tenant lieu d’impôt foncier) form and return it to Taxation and Property Records.  However, applicants are encouraged to use the online form for faster processing. 

How does it work?

Each Grant-in-Lieu of Property Taxes Program application requires approval in accordance with Treasury Board Policy 19.01 Grants-In-Lieu Of Property Taxes.  Grants are approved for a three-year period at which time the applicant must re-apply to determine eligibility. The grants are subject to review at any time.

Grants must be based on need as established by financial statements and should not exceed the amount of provincial taxes payable. As a general rule, financial need will be considered established if the organization is in a net loss position. If the organization is in a net income position, financial need will be established if either:

• Grant exceeds 25% of the organization’s net income; or
• Grant exceeds 5% of the organization’s liquid assets; or
• Grant exceeds 5% of the organization’s equity.

Requests on the basis of financial need outside of this scope will be considered on a case-by-case basis.

Upon approval, a credit will be authorized to be made against the property tax account of the applicant and a letter, signed by the Minister of Finance (or designate) will be mailed to all applicants indicating the grant amount approved.

Approval will not be considered for new requests that are more than one year prior to the fiscal year in which the grant is request.

Who should I contact if I have questions about the program?

Taxation and Property Records

Phone: (902) 368-4070
Fax:      (902) 368-6164
Email:  taxandland@gov.pe.ca