K. West

The appellant, Municipal Property Assessment Corporation, appealed a decision of the Assessment Review Board regarding the assessed value of a grocery store property.

The Board had determined the current value of the property as development land but then drastically reduced the assessed value by applying the equitable principle under the Assessment Act, comparing it only to two other grocery stores.

The Divisional Court allowed the appeal, finding that the Board erred in law and rendered an unreasonable decision by failing to consider all points of comparison to determine 'similar lands' and by failing to properly apply the equitable principle.

The matter was remitted to a differently constituted panel of the Board.

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.