The Attorney General of Quebec appealed a decision declaring provisions of the Act respecting municipal taxation unconstitutional.
The impugned provisions created a new system of school financing based on government grants, making taxation a complementary method subject to a referendum requirement for amounts exceeding a certain limit.
The Supreme Court of Canada held that the provisions prejudicially affected the rights and privileges respecting denominational schools guaranteed by section 93 of the Constitution Act, 1867.
Specifically, the legislation failed to ensure proportional distribution of grants and subjected the taxing power of denominational school boards to the approval of electors outside their districts.
The appeal was dismissed and the provisions were declared ultra vires.
