Federal buildings are properties owned by the Government of Canada located in communities across the country, including post offices, tax centres, passport offices, Service Canada offices, RCMP detachments, federal courthouses, military facilities, and various departmental offices. These buildings are exempt from municipal property taxes because the constitution doesn't allow one level of government to tax another. However, the federal government makes Payments in Lieu of Taxes (PILT) to municipalities, approximating what property taxes would be. Municipalities provide services to federal buildings—roads, water, fire protection, police response—funded partly through PILT payments. Federal building decisions can significantly impact communities: closing a large federal facility affects local employment and economy, while new facilities or expansions create opportunities. Municipalities have limited influence over federal property decisions but can advocate for local interests through MPs and federal-municipal dialogue.