F.X. Shea

The appellant sought leave to appeal a decision of the Assessment Review Board confirming the assessed value of its two senior citizen apartment buildings.

The appellant argued the Board erred by relying on actual rents that included fees for non-realty services rather than fair market rents.

The Divisional Court dismissed the motion for leave to appeal, finding that the Board made no error of law and that the appellant failed to discharge its onus under section 60(1) of the Assessment Act to prove the assessment was inequitable compared to similar properties in the vicinity.

The appellant appealed a decision of the Assessment Review Board regarding the property tax assessments for a shopping mall for the 1996 and 1997 taxation years.

The appellant argued the Board erred by failing to use a recent arm's length sale price as the best evidence of market value, and by applying a 'current value' approach rather than a 'market value' approach.

The Divisional Court held that the Board's treatment of the recent sale was a question of mixed fact and law and thus not appealable.

However, the Court found the Board erred in law by applying a 'current value' (unencumbered fee simple) approach, which was introduced by 1997 amendments not applicable to the years in question.

The appeal was allowed and the matter remitted to the Board for redetermination based on the correct 'market value' test.