The appellants appealed a decision of the Assessment Review Board regarding the property tax assessments of six large office complexes.
The Board had accepted the respondents' argument that the statutory definition of 'current value' as 'fee simple, if unencumbered' required the properties to be valued as if vacant, ignoring existing leases.
The Divisional Court allowed the appeal, holding that the Board's interpretation was wrong in law.
The Court found that the entire ownership interest, including both the landlord's and tenants' interests, must be valued, and that the 1997 amendment to the Assessment Act was intended to ensure consistency in valuation by requiring the use of market rents rather than actual rents.
