Frank Shea

The Municipal Property Assessment Corporation (MPAC) brought a motion for leave to appeal a decision of the Assessment Review Board that significantly reduced the property tax assessments for a grocery store property.

The Board had found the current value of the property based on its development potential but then reduced the assessment to a fraction of that value by applying a general grocery store valuation model to achieve 'equity'.

MPAC argued the Board erred in its interpretation and application of the equity provisions in the Assessment Act.

The Divisional Court granted leave to appeal, finding that the Board's interpretation of the law raised sufficient doubt as to its legal correctness and involved an important question of law meriting the court's attention.

The applicants sought leave to appeal an interim decision of the Assessment Review Board, which classified their properties offering extended stay accommodations as hotels under s. 17(2) of the Assessment Act.

The Divisional Court applied the test for leave to appeal, finding that while the question of law was important, there was no reason to doubt the correctness of the Board's interpretation.

The plain language of the statute clearly caught the subject properties within the definition of a hotel.

The motion for leave to appeal was dismissed.