Toronto Transit Commission v. City of Toronto

Toronto Transit Commission v. City of Toronto

Where a lessee has a contractual right to occupy municipal-owned land that was exempt, that contractual right defeats the exemption in para.9 s.4 of The Assessment Act and renders the land assessable for municipal taxation even if the lessee has not physically exercised the right beyond minor testing; accordingly the City's assessments were valid.

Citation
[1971] SCR 746
Parties
Plaintiff/appellant: Toronto Transit Commission; Defendant/respondent: The Corporation of the City of Toronto
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
5 April 1971
Procedural Posture
Taxation Appeal / On Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario (trial Judgment by Moorhouse J. Challenged)
Outcome
Appeal of Toronto Transit Commission dismissed; appeal of the Corporation of the City of Toronto allowed.
Legal Topics
Property Tax Exemption, Municipal Assessment, Lease and Occupation, Limitation Period for Assessment Challenges
Source Language
English
Taxation Property Law Municipal Law Statutory Interpretation Property Tax Exemption Municipal Assessment Lease and Occupation Limitation Period for Assessment Challenges

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Parties

Toronto Transit Commission

Plaintiff/appellant

The Corporation of the City of Toronto

Defendant/respondent

Procedural Posture

Taxation Appeal / On Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario (trial Judgment by Moorhouse J. Challenged)

Legal Issues

  1. 1 Whether lands owned by a public transit commission leased to a private lessee remain exempt from municipal assessment where the lessee has not physically developed the lands beyond soil testing
  2. 2 Whether a contractual right of occupation by a lessee, unexercised, defeats the municipal exemption in para. 9 of s.4 of The Assessment Act
  3. 3 Whether s.88 limitation barred challenge to the 1962 assessment

Ratio Decidendi

Where a lessee has a contractual right to occupy municipal-owned land that was exempt, that contractual right defeats the exemption in para.9 s.4 of The Assessment Act and renders the land assessable for municipal taxation even if the lessee has not physically exercised the right beyond minor testing; accordingly the City's assessments were valid.

Court Disposition

Appeal of Toronto Transit Commission dismissed; appeal of the Corporation of the City of Toronto allowed.

Orders

  • Appeal of Toronto Transit Commission dismissed without costs.
  • Appeal of the Corporation of the City of Toronto allowed with costs.