Two applicants sought judicial review of municipal by-laws implementing a volume-based solid waste user fee and associated rebate program introduced by the City of Toronto.
The applicants argued that the waste collection charge was in substance an unlawful tax affecting provincial tax ratio rules and that the rebate constituted an impermissible redistribution of property taxes contrary to the City of Toronto Act, 2006.
The court held that the waste charge was a valid user fee because a sufficient nexus existed between the amount collected and the cost of providing waste services.
The court further held that the rebate was properly characterized as a municipal grant authorized under s. 83 of the City of Toronto Act, 2006 rather than a tax rebate.
The applications to quash the relevant by-law provisions were dismissed.