New Mount Sinai Hospital v. Toronto

New Mount Sinai Hospital v. Toronto

Majority (Ritchie, Hall, Spence, Laskin JJ.) held the special sewer levy is a tax and s.3(7) of The Assessment Act expressly exempts public hospitals receiving aid; that exemption cannot be removed except by clear legislative provision, and the City of Toronto Act and by‑laws contain no such provision; therefore the hospital is exempt and entitled to repayment.

Citation
[1973] SCR 541
Parties
Appellant / Plaintiff: New Mount Sinai Hospital; Respondent / Defendant: The Corporation of the City of Toronto
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
28 February 1973
Procedural Posture
Taxation Appeal / Appeal to Supreme Court of Canada From the Court of Appeal for Ontario
Outcome
Appeal allowed; judgment of Court of Appeal reversed; Judson J. dissenting
Legal Topics
Tax Exemption, Special Sewer Levy, Statutory Conflict, Statutory Interpretation, Local Improvement Charges
Source Language
English
Taxation Municipal Law Property/assessment Law Tax Exemption Special Sewer Levy Statutory Conflict Statutory Interpretation Local Improvement Charges

Case Brief

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Parties

New Mount Sinai Hospital

Appellant / Plaintiff

The Corporation of the City of Toronto

Respondent / Defendant

Procedural Posture

Taxation Appeal / Appeal to Supreme Court of Canada From the Court of Appeal for Ontario

Legal Issues

  1. 1 Whether the special sewer levy imposed under the City of Toronto Act conflicts with s.3(7) of The Assessment Act
  2. 2 Whether the special sewer charge is a tax within the meaning of The Assessment Act
  3. 3 Whether a general statutory tax exemption for public hospitals can be removed except by specific legislative enactment

Ratio Decidendi

Majority (Ritchie, Hall, Spence, Laskin JJ.) held the special sewer levy is a tax and s.3(7) of The Assessment Act expressly exempts public hospitals receiving aid; that exemption cannot be removed except by clear legislative provision, and the City of Toronto Act and by‑laws contain no such provision; therefore the hospital is exempt and entitled to repayment.

Court Disposition

Appeal allowed; judgment of Court of Appeal reversed; Judson J. dissenting

Orders

  • Declare hospital exempt from the special sewer charges imposed by the City of Toronto under the impugned by-laws
  • City of Toronto to repay to the hospital the sum of $698.80 with interest from date of payment