The appellants challenged a Divisional Court decision that held development lands zoned for industrial and commercial use could not receive farm land assessment treatment because agricultural use was illegal under the zoning by-laws.
The Court of Appeal held that s. 19(3) of the Assessment Act focuses on actual use of the land as a factual matter, not on zoning legality, and that the ordinary meaning of the provision should govern absent compelling contrary indicators.
The court found no basis to read the word “lawfully” into the statute, noted the legislative scheme and policy favoured continued agricultural production, and concluded the Ontario Municipal Board reasonably found the lands were farm lands used only for farm purposes.
The appeal was allowed, the Divisional Court order was set aside, and the Board's order was restored.
