Development Charges

Development charges assist in providing growth related infrastructure required to service future development in the Town of Whitby by establishing a viable capital funding source. If you are undertaking a planning and development project, you may need to pay development charges. The Town typically collects development charges at the time when a building permit is issued.

Whitby also collects development charges on behalf of the Region of Durham and the area school boards (DDSB and DCDSB); each have their own by-laws and policies which governs their rules and rates. The development charge fees are indexed (increased) annually on different dates based on the by-laws: the Town of Whitby on February 1st, DDSB and DCDSB on May 1st and the Region of Durham on July 1st.

You can view the Province of Ontario’s Development Charges Act, 1997, s.o. 1997, c. 27 or the Town of Whitby’s Key Information Pamphlet for more information.

Determining if development charges are payable

Payment of development charges may be required for residential and non-residential development when:

  • Constructing a new building(s).
  • Adding or altering an existing building(s) which increases the floor area or number of units.
  • Redeveloping a property or properties, resulting in a change of use.

If there is a demolition and redevelopment of the same property, a development charge credit may be available, to help offset any development charges that are owing. Each of the development charge by-laws for the Town of Whitby, the Region of Durham, DDSB and DCDSB outline specific conditions that must apply. Please note, the time period between the issuance of the demolition permit and the issuance of the new building permit must not exceed the timeframe outlined in the by-laws: DDSB and DCDSB (2 years), Whitby (5 years), Region of Durham (10 years).

Please refer to the Town of Whitby Development Charges By-Law #7748-21 which came into effect on June 1, 2021 for more information.

The Town of Whitby’s development charge rates are subject to annual indexing on February 1st in accordance with the most recent twelve month change in the Statistics Quarterly, Construction Price Statistics (non-residential building construction price index).

  • DC rates are also subject to change if an amendment to the by-law or a new development charge by-law is passed by Council.
  • DCs are calculated at the rate in effect at the time of building permit issuance for all development with planning applications made prior to January 1, 2020.
  • Effective January 1, 2020 changes were made to the timing and calculation of development charges in accordance with Bill 108, the More HomesMore Choice Act.
    • For developments proceeding through site plan application or zoning by-law amendment application made under section 34 of the Planning Act, the base DC rates for the town will be set on the day a complete application is received (the submission date).
    • The base rate expires 2 years after the approval of the planning application.
    • Interest will be applied to the base DC rates from the time of the complete planning application submission date to the date the building permit issuance date. 
    • Interest for the town’s DC’s will be set as per the Development Charges Act, which is Prime + 1%, adjusted quarterly.
    • Refer to the Town of Whitby Timing of Development Charge Calculation Policy for more information.
    • Rates are dependent on the type of development and the use of the building.  When interpreting the rate schedule, please refer to the Residential and Non-Residential sections for helpful information.

 

The Region of Durham and School Boards (DDSB/DCDSB) also index their development charge rates annually on July 1st and May 1st, respectively.  Please contact the Region and School Boards directly for inquiries related to their development charge indexing.

 

Development Charge Rate Schedules

Any development charge quotations provided by the Town of Whitby, will have an expiry date. It is up to the applicant to be aware of that expiry date.

The base Town of Whitby development charge rate is based on your site plan or zoning application submission date, as found on your letter of complete application. If a development has both planning applications submitted on/after January 1, 2020, the site plan application date is used.

If your development is not proceeding through these planning applications, if your application pre-dates January 1, 2020, or if your site plan or zoning application was approved more 2 or more years ago, please refer to the current rate schedules for the current development charge rate.

  

Current Rate Schedules

 

Historic Town of Whitby Rate Schedules

For historic DC rates for the Region of Durham, DDSB and DCDSB, please contact them directly.

 

Pre-payment of Development Charges

If all other minimum development application requirements have been satisfied, the Town of Whitby may permit the pre-payment of development charges up to 60 days in advance of building permit issuance. If granted and building permit issuance occurs more than 60 days after Town of Whitby Development Charges are paid, additional development charges will be due (if applicable) for:

  • any change in the posted development charge rate(s) as a result of the annual indexing on February 1st, or any other approved development charge posted rate increase; or
  • any additional incremental interest due, for those developments with a site plan application or zoning by-law amendment application made after January 1, 2020. Incremental interest will be calculated from the date of development charge payment to the date of building permit issuance for any calculated development charge rate(s).

 

The Region of Durham, DDSB and DCDSB may have different pre-payment allowances, please contact them directly with any questions.

It is recommended that all conditions for building permit issuance have been completed prior to the payment of development charges.

  • Durham District School Board and Durham Catholic District School Board education development charges also apply on residential development.  
  • Development charges are based on gross/total floor area of the building, for new or expansion of non-residential development, or redevelopment which includes change of use from one residential/non-residential type to another non-residential type.
  • Non-residential development is categorized as commercial, industrial or institutional for the Town of Whitby development charges.

Protocol for determining applicable development charges in commercial and industrial combined

use developments

A protocol that supports the principles of development charges was developed and implemented to provide a consistent and equitable approach to determining the applicable development charge when a development area supports both industrial and commercial activities within the same space.

 

Decision 1 – Is the business open to and sells to the public?

If no, then the entire Gross Floor Area (“GFA”) is assessed as industrial.

If yes, then proceed to Decision 2.

Decision 2 – Are the products that are sold to the general public manufactured, produced, or processed on site?

If yes, then the entire GFA is assessed as industrial.

If no, then proceed to Decision 3.

Decision 3 – Is the area where sales to the general public clearly delineated from the other parts of the building that is used for warehousing, storage or distribution?

If no, then the entire GFA is assessed as commercial.

If yes, then proceed to Decision 4.

Decision 4 – Is the area used for warehousing, storage or distribution primarily intended for goods sold to the public on site?

If yes, then the entire GFA is assessed as commercial.

If no, then the areas used for sales to the public and accessible by the public is assessed as commercial. The remainder of the GFA (including all areas used for warehousing, storage or distribution) is assessed as industrial.

 

This protocol was approved by Council and will be carried forward and incorporated as part of the next DC by-law update.

 

  • Types of non-residential development are defined in Development Charges By-Law #7748-21
    • Region of Durham development charges also apply on non-residential development.  
  • The Town of Whitby typically collects development charges just prior to the building permit being issued, for the Town of Whitby, Region of Durham, and the school boards (DDSB and DCDSB).
  • Any development charge quotations provided by the Town of Whitby, will have an expiry date. It is up to the applicant to be aware of that expiry date.

 

Industrial Development Charges Deferral and Installment Payment Program

Staff Report FS 18-25 

  • A temporary program to provide industrial development applicants the option to defer the payment of Town DCs
  • Pay applicable DCs in six (6) equal installments over five (5) years:
    • First payment at the earlier of actual occupancy or the issuance of a occupancy permit;
    • Payments two (2) to six (6) on the next five (5) anniversaries of the first payment date.
  • Participation in the program is not mandatory, and industrial development applicants that choose to participate will be required to enter into an Agreement.
  • An administrative fee will be charged ($2,000 per application) and applicable interest (prime + 1% per annum, adjusted quarterly) applied to the balance in accordance with the Town DC interest policy.

Development Charge Installment Payments

In accordance with Bill 108, the More Homes, More Choices Act, 2019 and Bill 23, the More Homes Build Faster Act, 2022, the following types of development, shall pay development charges in installments.

  • Rental housing (as defined by the legislation) shall pay development charges in six annual installments beginning on the date the building is first occupied, and each of the following five anniversaries of that date.
  • Institutional development (as defined by the legislation) shall pay development charges in six annual installments beginning on the date the building is first occupied, and each of the following five anniversaries of that date.

Other Development Charge Installment Details

  • Interest is charged from the time the Town of Whitby development charge would normally have been payable (building permit issuance), until the final payment is received, at the applicable interest rate established under the Development Charges Act and the Town of Whitby Development Charge Interest Policy.
  • As per Bill 23, the More Homes Build Faster Act, 2022, the current interest rate is 6.95%, which is equal to average prime rate +1%.
  • Owners may enter into an alternative payment agreement with the Town of Whitby and choose to forego the deferral of development charges (at the time of building permit) or pay the balance of development charges outstanding at the time of first occupancy.
  • For more information, please refer to the Development Charge Annual Installment Payments Policy.
  • Please contact the Region of Durham for their applicable policies.

The Corporation of the Town of Whitby collects development charges under the authority of the Development Charges Act, 1997, s.o. 1997, c.27 and the Town Development Charges By-Law #7748-21. Development charges shall be collected in a financial sustainable manner in order to fund growth related capital costs to deliver complete communities.

As per the Development Charges Act, 1997, s.o. 1997, c.27, the interest rate is set to average prime rate + 1%, adjusted quarterly on January 15th, April 15th, July 15th, and October 15th.  

To learn more about this, review the Town of Whitby Development Charge Interest Policy.

The Region of Durham has its own Development Charge Interest Policy, please contact them directly with any questions.

The Town of Whitby typically collects development charges just prior to the building permit being issued, for the Town of Whitby, Region of Durham, and the school boards (DDSB and DCDSB).

Any development charge quotations provided by the Town of Whitby, will have an expiry date. It is up to the applicant to be aware of that expiry date.

Development Charge Installment Payments

In accordance with Bill 108, the More Homes, More Choices Act, 2019 and Bill 23, the More Homes Build Faster Act, 2022, the following types of development, shall pay development charges in installments.

  • Rental housing (as defined by the legislation) shall pay development charges in six annual installments beginning on the date the building is first occupied, and each of the following five anniversaries of that date.
  • Institutional development (as defined by the legislation) shall pay development charges in six annual installments beginning on the date the building is first occupied, and each of the following five anniversaries of that date.

Other Development Charge Installment Details

  • Interest is charged from the time the Town of Whitby development charge would normally have been payable (building permit issuance), until the final payment is received, at the applicable interest rate established under the Development Charges Act and the Town of Whitby Development Charge Interest Policy.
  • As per Bill 23, the More Homes Build Faster Act, 2022, the current interest rate is 6.95%, which is equal to average prime rate +1%.
  • Owners may enter into an alternative payment agreement with the Town of Whitby and choose to forego the deferral of development charges (at the time of building permit) or pay the balance of development charges outstanding at the time of first occupancy.
  • For more information, please refer to the Development Charge Annual Installment Payments Policy.
  • Please contact the Region of Durham for their applicable policies.

Education development charges are imposed by the Durham District School Board and the Durham Catholic District School Board under the authority of the Education Act.   Education development charges are payable at the rate in effect at building permit issuance.

Statutory Legislated Development Charge Exemptions

The Development Charges Act, 1997, s.o. 1997, c.27, provides for certain mandated development charge exemptions and discounts, such as:

  • Exemption for a board of education.
  • Exemption for any municipal or local board thereof.
  • Exemption for the enlargement of an existing home.
  • Exemption for additional residential units in existing homes (legislation sets maximum number).
  • Exemption for additional residential units in new residential buildings (legislation sets maximum number).
  • Exemption for additional residential units in existing rental residential buildings (legislation sets maximum number).
  • Exemption for non-profit housing (as defined).
  • Exemption for inclusionary zoning residential units (as defined).
  • Discount for a rental housing development, as defined in the legislation as a building or structure with four or more residential units all of which are intended or use as rented residential premises. 
    • Rented residential premises with three or more bedrooms shall be reduced by 25%.

    • Rented residential premises with two bedrooms shall be reduced by 20%.

    • Rented residential premises with one bedroom or a bachelor/studio shall be reduced by 15%.

  • Exemption for the enlargement of an industrial building up to a maximum of 50% of the original gross floor area of the structure that existed before the date the development charges by-law came into effect.

Non-Statutory Town of Whitby Development Charge Exemptions

The Town of Whitby provides further development charge exemptions in by-law #7748-21, such as;

  • The development of a non-residential farm building used for a bona fide farm use.
  • An area of worship within a building or structure owned by and used for a place of worship.
  • Land, buildings, or structures owned by and used for a hospital.
  • Land, buildings, or structures owned by and used for a hospice.
  • Land, buildings, or structures used for a temporary use permitted under a Zoning By-law amendment enacted under section 39 of the Planning Act.
  • The temporary erection of a building without foundation as defined in the Building Code Act for a period not exceeding six (6) consecutive months and not more than six (6) months in any one calendar year on a site for which development charges or lot levies have already been paid.
  • The temporary erection of a building without foundation as defined in the Building Code Act for the primary use as a temporary sales trailer on land undergoing development, provided that such building is removed or demolished from the site no later than six (6) months after sales are completed, otherwise development charges shall be calculated and deemed payable in accordance with this by-law; or
  • A parking structure/garage that is primarily for the use of the public within the Town’s Downtown Whitby Community Improvement Plan area or Downtown Brooklin Community Improvement Plan area.

Other Potential Town of Whitby Development Charge Exemptions / Credits

  • Owners, uses, or buildings that may be exempt from the payment of development charges because of the application of a statute, regulation, or order of the Province of Ontario or the Government of Canada.
  • Subject to budgetary approval, a development charge grant may be available for eligible development through the Downtown Whitby Community Improvement Plan.
  • Demolition credits will be provided against applicable development charges where building or structures have been demolished to permit redevelopment of the property.
    • The credit is based on the number and type of residential units demolished and/or the total floor area and type of non-residential building or structures demolished and is available for five years from the issuance date of the demolition permit.
    • Special Consideration - Due to the Province of Ontario’s COVID-19 Emergency Order that shut down non-essential services (including construction projects not included as “essential”) for the 62 days from March 24, 2020, to June 4, 2020, we will be extending the five year DC demolition credit expiry by 62 days if the demolition permit was open and active from March 24, 2020 to June 4, 2020.

Please refer to the Region of Durham, Durham District School Board, and the Durham Catholic District School Board websites for more information on exemptions and credits pertaining to their development charges.

Parkland dedication fees are separate from development charges, and are subject to the Conveyance of Parkland and Cash-in-Lieu of Parkland By-Law #7733-21.  More information can be found on the planning and development webpage.

The Town of Whitby will provide a development charge quotation on behalf of the Region of Durham, the Durham District School Board and the Durham Catholic District School Board that includes the total development charges due.

Payment for all applicable development charges is due to the Corporation of the Town of Whitby.

Payment Options

To help serve you better, please email the Town of Whitby Development Finance division at developmentcharges@whitby.ca before making a payment.

Any development charge quotations provided by the Town of Whitby, will have an expiry date. It is up to the applicant to be aware of the development charge quotation expiry date and ensure payment is received by the Town of Whitby prior to that date.

 

Payment by Cheque
  • Cheque payments payable to the Corporation of the Town of Whitby may be dropped off into the drop box at the front of the Whitby Municipal Building. Envelopes should be to the attention of Development Finance.
  • A copy of the development charge quote should be included in the payment envelope.
  • The Whitby Municipal Building is located at 575 Rossland Road East, Whitby, Ontario, L1N 2M8.
  • Cheques may also be couriered to the address above, to the attention of Development Finance.
  • Returned payments are subject to a returned item fee of $52.50. A returned payment may result in addition development charges being due, it may prevent your permit from being issued, or it may result in your permit being revoked. Any additional charges as a result of a returned payment are the responsibility of the applicant.

 

Payment by EFT (electronic fund transfer) or Wire
  • EFT or Wire payments are permitted, the banking instructions will be included on the development charge quotation.
  • Please add $17.50 to any wire payments to cover the servicing fee.

As required by the Development Charges Act, 1997, the Treasurer of the Town of Whitby shall prepare an annual financial statement reporting on the status and transactions to the development charge reserve funds for the previous year.  This statement is presented to the Council of the Town of Whitby for their review. 

  • Annual Statement of Development Charge and Parkland Reserve Funds as at December 31, 2023 (Staff Report FS 16-24)
  • Annual Statement of Development Charge and Parkland Reserve Funds as at December 31, 2022 (Staff Report FS 19-23)
  • Annual Statement of Development Charge and Parkland Reserve Funds as at December 31, 2021 (Staff Report FS 33-22)
  • Annual Statement of Development Charge and Parkland Reserve Funds as at December 31, 2020 (Staff Report FS 35-21)
  • Annual Statement of Development Charge and Parkland Reserve Funds as at December 31, 2019 (Staff Report CS 30-20)
  • Annual Statement of Development Charge and Parkland Reserve Funds as at December 31, 2018 (Staff Report CS 34-19)

Under section 20 of the Development Charges Act, 1997 a person required to pay a development charge, or the person’s agent, may complain to the council of the municipality imposing the development charge that:

  • the amount of the development charge was incorrectly determined;
  • whether a credit is available to be used against the development charge, or the amount of the credit or the service with respect to which the credit was given, was incorrectly determined; or,
  • there was an error in the application of the development charge by-law.

A complaint may not be made later than 90 days after the day the development charge, or any part of it, is payable.

The complaint must be in writing, must state the complainant’s name, the address where notice can be given to the complainant and the reasons for the complaint.  The complaint can be emailed to treasuryinternet@whitby.ca or mailed to Christopher Harris, Town Clerk, Town of Whitby, 575 Rossland Road East, Whitby, ON L1N 2M8.

The council shall hold a hearing into the complaint and shall give the complainant an opportunity to make representations at the hearing.

The clerk of the municipality shall mail a notice of the hearing to the complainant at least 14 days before the hearing.

After hearing the evidence and submissions of the complainant, the council may discuss the complaint or rectify any incorrect determination or error that was the subject of the complaint.

Town resources

Other entities

Governance

More questions?

For clarification or further questions please contact the Town of Whitby Development Finance division in the Financial Services department at developmentcharges@whitby.ca or 905.430.4300 x 2917.

For information on the Region of Durham's development charges, please contact rob.goddard@durham.ca or 905.668.7711 x 3469 for residential inquiries, and elisa.shiu@durham.ca or 905.668-4113 x 3486 for non-residential inquiries.

For information on the Durham District School Board and Durham Catholic District School Board education development charges, please contact Jody.Dale@dcdsb.ca or 905.576.6150 x 2211.

Contact Us

Town of Whitby

575 Rossland Road East
Whitby, ON L1N 2M8

905-430-4300
service@whitby.ca

Contact the Town of Whitby

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