The appellant gravel pit operators challenged municipal by-laws that imposed a volumetric fee for soil and gravel removal permits.
They argued the fees constituted indirect taxation ultra vires the province and that the by-laws were discriminatory.
The Supreme Court of Canada held that the volumetric fees, while indirect in their general tendency, were supportable under the provincial licensing power as they were ancillary to a valid regulatory scheme intended to cover the costs of road repair and regulation.
The Court also found that any discrimination between commercial and non-commercial extractors was implicitly authorized by the enabling provincial legislation.
The appeal was dismissed.
