Tara Piurko

The applicants sought leave to appeal decisions of the Assessment Review Board that applied issue estoppel to dismiss their property tax assessment appeals.

The applicants attempted to re-open the 2016 valuation of their land based on the impact of the COVID-19 pandemic on their profitability.

The Divisional Court dismissed the motions for leave to appeal, holding that subsequent market changes to business results do not constitute a change in the 'state and condition' of the land and are not a valid basis to re-open an assessment.

Following a successful appeal regarding the interpretation of 'fee simple, if unencumbered' for property assessment purposes, the appellants (Municipal Property Assessment Corporation and the City of Toronto) sought costs on a partial indemnity basis.

The respondents argued the claimed fees were excessive and that the appellants should have coordinated their submissions.

The court found the issues complex, the amounts at stake substantial, and no unnecessary overlap in arguments.

Applying Rule 57.01(1) of the Rules of Civil Procedure, the court fixed costs at $70,500 for fees and counsel fees for each appellant, plus their respective disbursements.

The applicants, Municipal Property Assessment Corporation and the City of Toronto, brought motions for leave to appeal an interim decision of the Assessment Review Board concerning the property tax assessments of several large office complexes.

The central issue was the Board's interpretation of 'current value' and 'fee simple, if unencumbered' under the Assessment Act, which led the Board to value the properties as if vacant and untenanted.

The Divisional Court found there was reason to doubt the correctness of the Board's interpretation, noting it may be inconsistent with the statutory scheme and prior case law.

Leave to appeal was granted.