It is important to understand how municipal governments relate to the other orders of government in Canada ­ the provincial and federal governments. 

There are three types of government:

  • the Government of Canada, or the federal government
  • the Government of Ontario, or the provincial government
  • Your Local Government,  the municipal level of government which also includes related boards and commissions such as school boards, is the level of government responsible for most community affairs. 
Each level of government is responsible for providing certain services and has the ability to raise money through specific types of taxation. 

The Federal Government

The federal government has the power “to make laws for the peace, order and good government of Canada” except for subjects where the provinces are given exclusive powers. 

Among the many exclusive powers of the federal government are: 

  • regulation of trade and commerce
  • the post office
  • the census
  • national defence 
  • employment insurance
  • money and banking
  • copyrights
  • criminal law 
  • citizenship
  • foreign policy
According to the Constitution Act, 1867, everything not mentioned as belonging to the provincial governments comes under the power of the federal government. 

For more on the federal government of Canada, click here

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The Provincial Government

The Provincial governments are responsible for issues that are explicitly given to them in Canada's written constitution ­ the Constitution Act, 1867. 

Through the provincial legislature, the provincial government has the power to enact or amend laws and programs related to:

  • natural resources and environment
  • hospitals
  • property and civil rights in the province
  • education
  • administration of justice 
  • social services
The province directly funds or transfers money to institutions to ensure the delivery of these important responsibilites, as well as provincial highways, culture and tourism, prisons, post-secondary education, and other services to Ontarians.

The provincial legislature also has power over all municipal institutions in the province. 

For more on the provincial government, click here

Municipal Government 

The powers of municipal governments are determined by the provincial government. Municipal governments in Ontario are responsible for providing many of the services within their local boundaries that you rely on daily such as:

  • water and sewage
  • electric utilities
  • public transit
  • planning new community developments and enhancing existing neighbourhoods
  • maintenance of the local road network, including snow removal
  • library services
  • police services
  • fire services
  • public health
  • child care
  • animal control and by-law enforcement
  • parks and recreation
  • property assessment
  • arts and culture
  • long term care and senior housing 
  • economic development
  • ambulance
  • airports
  • provincial offences administration 
  • tax collection
  • side walks
  • storm sewers
  • social services
  • social housing 
  • garbage collection and recycling
Municipal governments in Ontario spend billions each year to provide the public services that meet these  important needs of Ontario residents.

Municipal governments raise most of the money for financing these services from the property taxes paid by residents and businesses in the local area. Additional funding comes from "user fees" or "non-tax revenue" from parking fines, for example, and some funding still comes from the provincial government.

For more on municipal government in Ontario, go to the AMO or the Ministry of Municipal Affairs and Housing

Property Taxes

Your municipal government collects property taxes from each property owner. Tenants pay a portion of their landlord's property taxes through their rent. 

The taxes are calculated by multiplying the assessed value of a property by a tax rate. There are two parts to the tax rate: 

  • the municipal tax rate, which is set by your municipal government; and
  • the education tax rate, which is set by the provincial government. 
A municipality can set different tax rates for different classes of property, and the main classes include residential, multi-residential, commercial and industrial. 

For more on property taxation, go to the Property Assessment and Taxation System, a Ministry of Municipal Affairs and Housing reference page.

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