The appellant, Municipal Property Assessment Corporation, appealed a decision exempting certain machinery and equipment at hydro-electric generating stations from real property taxation under the Assessment Act.
The appellant argued the application judge erred by applying the rejected 'integration test' to characterize penstocks and surge tanks as equipment rather than structures, and by finding that maintenance and safety items were used for producing electric power.
The Divisional Court dismissed the appeal, finding the application judge correctly applied the holistic approach from Metals Alloys and Nabisco, and correctly concluded that items need not be directly involved in the transformation of water to electricity to qualify for the exemption.
