City of Ottawa appealing court ruling over payments in lieu of taxes

Because different levels of government in Canada can’t tax each other, the federal government gives the City of Ottawa Payments in Lieu of Taxes (PILTs) to cover the cost of municipal services it receives. Photo by ERROL MCGIHON /POSTMEDIAArticle content

The City of Ottawa says it will appeal a Federal Court decision on how much money the federal government has to pay in lieu of property taxes for its various properties in the national capital.

THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY

Subscribe now to read the latest news in your city and across Canada.

Exclusive articles from Elizabeth Payne, David Pugliese, Andrew Duffy, Bruce Deachman and others. Plus, food reviews and event listings in the weekly newsletter, Ottawa, Out of Office.Unlimited online access to Ottawa Citizen and 15 news sites with one account.Ottawa Citizen ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Support local journalism.SUBSCRIBE TO UNLOCK MORE ARTICLES

Subscribe now to read the latest news in your city and across Canada.

Exclusive articles from Elizabeth Payne, David Pugliese, Andrew Duffy, Bruce Deachman and others. Plus, food reviews and event listings in the weekly newsletter, Ottawa, Out of Office.Unlimited online access to Ottawa Citizen and 15 news sites with one account.Ottawa Citizen ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Support local journalism.REGISTER / SIGN IN TO UNLOCK MORE ARTICLES

Create an account or sign in to continue with your reading experience.

Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.

Create an account or sign in to continue with your reading experience.

Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Accountor

Article content

Article content

In a memo Friday, chief financial officer Cyril Rogers said that, after consulting with lawyers, the city believed it had grounds to appeal.

Article content

“Given the financial and legal implications of the recent ruling, (the city) has taken steps to preserve its appeal rights to the Federal Court of Appeal and intends on filing an appeal by the appeal deadline of March 21,” Rogers wrote.

Article content

Article content

In February, the Federal Court sided with the federal government in its dispute with the City of Ottawa over the amount of payments in lieu of taxes (PILTs) the government should pay.

Article content

By signing up you consent to receive the above newsletter from Postmedia Network Inc.

Article content

The City of Ottawa had taken Public Services and Procurement Canada (PSPC) and Canada Post to court, claiming they owed $22 million more for PILTs for 2021 and 2022 on tax-exempt buildings.

Article content

On Feb. 19, the federal court said the federal government made a “reasonable” decision to pay a discounted rate for PILTs, which are paid instead of property tax to cover the cost of municipal services because the municipality cannot demand property taxes from another level of government.

Article content

At the time, Mayor Mark Sutcliffe called the judge’s decision “disappointing” and reiterated the city’s belief that it was being short-changed.

Article content

“(The) ruling doesn’t change the clear evidence that the federal government and its agencies have been underpaying their taxes to the City of Ottawa for years,” Sutcliffe wrote.

Article content

Article content

“I will continue to fight for our fair share and ensure the burden that has been shifted to local taxpayers is addressed.”

Article content

Article content

The matter is a pillar of the mayor’s “Fairness for Ottawa” campaign, which is seeking $100 million from the federal government to augment PILTs over the past five years and a commitment for funding over the next 10 years.

Article content

Staff previously told councillors that the city was estimating a funding shortfall of between $252 million and $445 million over the next 10 years unless the federal government changed the formula for PILTs.

Article content

Our website is your destination for up-to-the-minute news, so make sure to bookmark our homepage and sign up for our newsletters so we can keep you informed.

Article content