Texada Mines Ltd. v. Attorney-General of British Columbia

Texada Mines Ltd. v. Attorney-General of British Columbia

The Mineral Property Taxation Act's pith and substance was to impede or render economically impossible the export of iron ore by imposing an excessive tax on minerals in situ (coupled with the contemporaneous Iron Bounty Act to permit recoupment only through in‑province smelting), making the levy an export/indirect tax beyond provincial power and therefore ultra vires.

Citation
[1960] SCR 713
Parties
Appellant/plaintiff: Texada Mines Limited; Respondent/defendant: Attorney-General of British Columbia; Intervenant: Attorney-General of Ontario
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
13 June 1960
Procedural Posture
Constitutional Law Appeal Concerning Provincial Taxation Powers / Appeal to Supreme Court of Canada From the Court of Appeal for British Columbia (final Appeal)
Outcome
Appeal allowed; Mineral Property Taxation Act, 1957 (B.C.) c.60 declared ultra vires of the provincial legislature; regulations and demands under Act invalid
Legal Topics
Pith and Substance, Export Tax, Direct Vs Indirect Taxation, Provincial Vs Federal Powers, Regulatory Purpose Vs Revenue Raising
Source Language
English
Constitutional Law Taxation Administrative Law Pith and Substance Export Tax Direct Vs Indirect Taxation Provincial Vs Federal Powers Regulatory Purpose Vs Revenue Raising

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Parties

Texada Mines Limited

Appellant/plaintiff

Attorney-General of British Columbia

Respondent/defendant

Attorney-General of Ontario

Intervenant

Procedural Posture

Constitutional Law Appeal Concerning Provincial Taxation Powers / Appeal to Supreme Court of Canada From the Court of Appeal for British Columbia (final Appeal)

Legal Issues

  1. 1 Whether the Mineral Property Taxation Act, 1957 (B.C.) is ultra vires the provincial legislature
  2. 2 Whether the tax is a direct provincial tax on land/minerals or an indirect/export tax falling within federal jurisdiction
  3. 3 Whether contemporaneous Iron Bounty Act and legislative history evidence the true purpose of the tax

Ratio Decidendi

The Mineral Property Taxation Act's pith and substance was to impede or render economically impossible the export of iron ore by imposing an excessive tax on minerals in situ (coupled with the contemporaneous Iron Bounty Act to permit recoupment only through in‑province smelting), making the levy an export/indirect tax beyond provincial power and therefore ultra vires.

Court Disposition

Appeal allowed; Mineral Property Taxation Act, 1957 (B.C.) c.60 declared ultra vires of the provincial legislature; regulations and demands under Act invalid

Orders

  • Declare Mineral Property Taxation Act, 1957 (B.C.) c. 60 ultra vires
  • Declare regulations made under the Act invalid as beyond the Lieutenant-Governor in Council's powers