The applicant sought to quash a municipal by-law establishing a new municipal accommodation tax on the grounds that it violated the Municipal Act by attempting to repeal a by-law under which a debt had been contracted, and that it was passed in bad faith to vitiate a valid and subsisting agreement.
The court found that the revenue sharing arrangement under the transient accommodation tax did not constitute a debt under the Municipal Act, and that the municipality had not acted in bad faith in passing the new by-law.
The court dismissed the application, finding that the municipality retained the power to enter into agreements with eligible tourism entities and that no exclusivity was granted to the applicant.
