The City of Toronto applied to apportion unpaid 1998 and 1999 commercial taxes owed by a property developer among 18 current residential homeowners and two vacant lots in a townhouse development.
The homeowners objected, arguing they were innocent purchasers and the City had failed to adequately pursue the developer for the debt.
The Assessment Review Board found that special circumstances existed, including the retroactive effect of Regulation 399/03 and the City's inadequate collection efforts during amalgamation.
The Board concluded it was not appropriate to apportion the taxes to the innocent homeowners and instead apportioned the entire tax debt to the two vacant lots still owned by the developer.
