The applicant, The Corporation of the Township of Nipigon, sought a declaration that its Municipal Accommodation Tax By-law 1940 was properly enacted and that the respondents were in contravention of its terms.
The applicant also sought payment of outstanding municipal accommodation tax amounts.
The respondents argued that they should be compensated for the costs of collecting and remitting the tax.
The court found that the by-law was properly enacted pursuant to the Municipal Act, 2001, and that no statutory provision required the municipality to compensate businesses for tax collection efforts.
The court granted the application and ordered the respondents to pay the outstanding amounts plus costs.
