Peter Milligan

The applicant church sought a declaration that its single-building complex, which housed both a place of worship and a religious school, was exempt from property taxation under the Assessment Act.

The respondent assessment corporation argued that the school portions were taxable because the school was operated by a separately incorporated entity.

The court found that the church and the school formed a single patrimony, with the church controlling and dominating the school's operations.

The court held that the exemptions for a place of worship and a non-profit educational seminary applied to the school-use areas, granting the application.

The corporate appellants owned a commercial property that was severed in 2000.

In 2001, amendments to the Municipal Act imposed a new taxation scheme on 'eligible properties', including those that were subdivided or subject to a severance.

The appellants sought a declaration that the amendments did not apply retrospectively to their 2000 severance, arguing they had vested rights to the previous favourable tax treatment.

The Court of Appeal dismissed the appeal, holding that the definition of 'eligible property' operates retrospectively to ensure tax fairness and that the appellants had no vested right to the continuance of the previous tax scheme.