The appellants, owners of hotels, restaurants, and bars in Jasper National Park, challenged the annual business licence fees required to sell alcoholic beverages, arguing they constituted an ultra vires tax rather than a valid regulatory charge.
The Supreme Court of Canada held that while the fees possessed characteristics of a tax, they were in pith and substance regulatory charges connected to the regulatory scheme governing the administration and operation of the park.
The Court found a sufficient relationship between the fees paid and the regulatory scheme, as the revenues generated did not exceed the costs of operating the park, and the appellants benefited from the park's regulation.
The appeal was dismissed.
