Development Fees and Charges

Development Charges

Development charges are fees collected from developers at the time a building permit is issued. The fees help pay for the cost of infrastructure required to provide municipal services to new development, such as roads, water and sewer and other infrastructure.

You may be required to pay development charges for land development or redevelopment projects if you are:

Constructing a new building
Making an addition or alteration to an existing building that increases the number of dwelling units or the non-residential gross floor area
Redeveloping a property or making interior alterations that result in a change of use to all or part of the building.

For fees and charges, view our 2024 Development Charges Pamphlet or our 2025 Development Charges Pamphlet.

View our Development Charges Interest Rate Policy.

View our Securities for Development Agreements Policy.

Questions and inquiries, email: DevelopmentCharges@muskoka.on.ca

Development Charges By-Law

Muskoka District Council passed Development Charges By-law 2024-34 at their regular Council meeting of October 21, 2024. This by-law is set to expire on December 31, 2029. Development charges are required to pay for the increased capital costs related to the increased need for municipal services arising from development in The District Municipality of Muskoka.

2019 District of Muskoka Development Charges Background Study provides additional information on the current development fees and charges.

2024 Background Study and 2025 By-Law

The 2024 DC background study was made available to the public on July 18, 2024 and the required public meeting was held on August 8, 2024.

The adoption of the 2025 DC By-law and the approval of the Muskoka 2024 Development Charges Background Study was scheduled to be brought forward to Council for consideration on September 16, 2024.

On September 11, 2024, the Province announced that the District was successful in its application for funding under the Housing-Enabling Water Systems Fund and will receive $50.6 million for projects related to the Mountview and Golden Pheasant suite of projects. Given the significant value of the HEWSF grant, staff have brought forward an addendum to the existing background study.

Addendum to 2024 Development Charges Background Study

A notice of the 2025 Development Charges By-Law Adoption was issued, and adopted at the District Council meeting on October 21, 2024.

A public notice of the passing of Development Charges By-Law has been issued. The schedule of development charges imposed by By-Law 2024-34, will come into effect on January 1, 2025, unless appealed on or before November 30th, 2024.

2025 and 2024 Development Charges

Purpose of Development Charges

To recover the growth-related costs associated with the capital infrastructure needed to service new development and redevelopment.

Development charge funds may only be used for the purpose for which they are collected.

Development charges are based on the methodology that existing taxpayers should not be liable for the capital costs of new growth. At the same time, new taxpayers should not have to contribute more than the net capital cost attributable to growth in order to maintain current levels of municipal services.

Term of By-law

By-law 2024-34 was passed on October 21, 2024 by Muskoka District Council and came into effect on January 1, 2025. By-law 2024-34 is set to expire on December 31, 2029.

Development Charges Related Services

By-law 2024-34 imposes separate and distinct development charges:

Services Related to a Highway,
Ambulance Services
Services Related to Long-term Care
Waste Diversion Services
Transit Services
Rural Septage Services; and
Urban Water and Wastewater Services.

Payment of Development Charges

You may be required to pay development charges for land development or redevelopment projects if you are:

Constructing a new building;
Making an addition or alteration to an existing building that increases the number of dwelling units or the non-residential gross floor area;
Redeveloping a property or making interior alterations that result in a change of use to all or part of the building.

Development charges are payable in equal annual installments for rental and non-profit housing, and institutional development. The installments begin on the earlier of building permit issuance and first occupancy and continue for 5 years for rental housing and institutional development and 20 years for non-profit housing. As a result of the passage of Bill 23, More Homes Built Faster Act, purpose-built rental housing is eligible for development charge discounts ranging from 15-25% based on the size of the unit being built. Applicants should consult with the Area Municipality where the building permit is being sought for additional details.

For all other development, the default timing of payment is building permit issuance. Where any development charge, or part thereof, remains unpaid after the due date, the amount unpaid will be added to the tax roll and will be collected in the same manner as taxes.

Development Charge

All development is categorized as either:

a) residential or commercial accommodation;

b) non-residential; or

c) mixed use.

NOTE: Please refer to By-law 2024-34 for the rules associated with the calculation of each type of development.

Calculation of Charge

The development charge payable is the charge that would be determined under the by-law on:

the day of application for site plan control; or, if not applicable;
the day of application for rezoning; or, if both not applicable;
the day set out in the by-law.

Indexing of Development Charges

The amount of the development charges payable pursuant to this by-law shall be adjusted annually on January 1st each and every year, without amendment to this by-law, commencing on January 1, 2025, in accordance with the regulations.

Exemptions

The following types of development are exempt from payment of development charges:

a) a non-residential farm building or structure;

b) a cemetery and burial sites;

c) development described in sections 2(3) of the Development Charges Act;

d) buildings or structures owned and occupied by and used for the purposes of a municipality;

e) buildings or structures owned and occupied by and used by a Board of Education;

f) buildings or structures owned by a hospital approved as a public hospital;

g) buildings or structures owned and occupied by a college of applied arts and technology or university;

h) non-profit long term care homes; and

i) the enlargement of an existing industrial building provided the enlargement is less than 50% of the existing floor area.

Please contact The District Municipality of Muskoka for further information on eligibility for development charge exemptions:

Phone: 705-645-2100 or 1-800-461-4210

Redevelopment

A credit will be provided against development charges owing where buildings or structures have been demolished to permit the redevelopment of the property.
The eligibility for demolition credits is restricted to demolitions that occur within five years of the redevelopment of the property.

Statement of the Treasurer

The Treasurer of The District Municipality of Muskoka is responsible for the development charges reserve fund. The Treasurer’s Annual Statement, identifying opening and closing balances and development charges reserve fund transactions during the year, may be viewed by the public at www.muskoka.on.ca or in printed version in the office of the District Clerk during regular business hours by the end of September each year.

Bill 23, More Homes Built Faster Act

Bill 23 received Royal Assent on November 28, 2022. As a result, the Development Charges Act 1997 had a number of amendments. Some of these changes are reflected within. Applicants should consult with the Area Municipality where the building permit is being sought for additional details.

Development Charges Rates

Residential Charge by Unit Type (1) - (Schedule B-1)

Single Detached, Semi-Detached and Duplexes

Single Detached, Semi-Detached and Duplexes	Effective January 1, 2024	Effective January 1, 2025
Roads and Related	$4,905	$3,940
Wastewater Services	$8,193	$11,950
Water Services	$3,679	$5,717
Rural Area Septage	$425	$999
Total Serviced (i)	$16,777	$21,607
Total Unserviced (ii)	$5,330	$4,939

(1) Based on Persons Per Unit of: 2.90