Bayview Summit Development Ltd. v. Regional Assessment Commissioner, Region No. 14 et al., (1998) 107 O.A.C. 302 (DC)

• Judge: Southey, Chilcott and Pardu, JJ.
• Court: Ontario Court of Justice General Division (Canada)
• Case Date: February 02, 1998
• Jurisdiction: Ontario
• Citations: (1998), 107 O.A.C. 302 (DC)

Bayview Summit v. Assess. Commr. (1998), 107 O.A.C. 302 (DC)

MLB headnote and full text

Temp. Cite: [1998] O.A.C. TBEd. FE.017

Bayview Summit Development Limited (appellant) v. The Regional Assessment Commissioner, Region No. 14, and the Town of Markham (respondents)

(Court File No. 197/94)

Indexed As: Bayview Summit Development Ltd. v. Regional Assessment Commissioner, Region No. 14 et al.

Ontario Court of Justice

General Division

Divisional Court

Southey, Chilcott and Pardu, JJ.

February 5, 1998.

Summary:

The Ontario Municipal Board dismissed a taxpayer's appeal relating to the assessment of two rental townhouse complexes in the Town of Markham. The taxpayer was granted leave to appeal.

The Ontario Divisional Court allowed the appeal and returned the matter for determina­tion of the assessments before a differently constituted panel of the Ontario Municipal Board.

Real Property Tax - Topic 3575

Valuation - Business property, rental or income value - General - [See second Real Property Tax - Topic 3622 ].

Real Property Tax - Topic 3622

Valuation - Business property - Market value - Methods of assessment - The Ontario Municipal Board dismissed a taxpayer's appeal relating to the assessment of two rental townhouse complexes in the Town of Markham - The taxpayer appealed - The Ontario Divisional Court held that the Board erred in law by holding that the assessment role was "frozen" in 1967 and refusing to have regard to current market values in testing the equity of assessment pursuant to s. 60(1) of the Assessment Act - Although there might be no change from year to year in the amount at which the property was assessed, a taxpayer was entitled to question the as­sessment of his property in each year - See paragraphs 3 to 5.

Real Property Tax - Topic 3622

Valuation - Business property - Market value - Methods of assessment - The Ontario Municipal Board dismissed a taxpayer's appeal relating to the assessment of two rental townhouse complexes in the Town of Markham - The taxpayer appealed - The Ontario Divisional Court held that the Board erred in law by accept­ing the 1967 assessment per square foot comparison as satisfying the test of equity under s. 60(1) of the Assessment Act - Any method of valuing income producing properties that failed to take into account the relative values from a comparison of the income producing potential of prop­erties could not satisfy the test of equity under s. 60(1) - See paragraph 7.

Real Property Tax - Topic 3622

Valuation - Business property - Market value - Methods of assessment - The On­tario Municipal Board dismissed a tax­payer's appeal relating to the assessment of two rental townhouse complexes in the Town of Markham - The taxpayer appealed - The Ontario Divisional Court held that the Board erred in law by requir­ing that the taxpayer use the same method­ology as the assessor to demonstrate an inequity of assessment under s. 60(1) of the Assessment Act - There was no such requirement in the Act - If the assessor used a methodology that did not create an accurate comparison of value, the taxpayer was required to use a different methodol­ogy to show what the relative values of the subject property and similar properties in the vicinity might be - See paragraph 8.

Real Property Tax - Topic 3700

Valuation - Business property - Replace­ment cost - General - The Ontario Munici­pal Board dismissed a taxpayer's appeal relating to the assessment of two rental townhouse complexes in the Town of Markham - The taxpayer appealed - The Ontario Divisional Court held that the Board erred in law by refusing to consider depreciation when applying the replace­ment cost approach - See paragraph 6.

Cases Noticed:

Peat Marwick Ltd. (Receiver) v. Regional Assessment Commissioner, Region No. 20 and Brantford (City) (1994), 74 O.A.C. 309 (Div. Ct.), refd to. [para. 5].

Horton CBI Ltd. v. Regional Assessment Commissioner, Region No. 18 and Fort Erie (Town) (1986), 13 O.A.C. 318; 53 O.R.(2d) 701; 32 M.P.L.R. 36 (Div. Ct.), refd to. [para. 6].

Statutes Noticed:

Ontario Municipal Board Act, R.S.O. 1990, c. O-28, sect. 60(1) [para. 3].

Counsel:

Richard R. Minster, for the appellant;

Louie M. Pilla, for the respondents.

This appeal was heard on February 2, 1998 before Southey, Chilcott and Pardu, JJ., of the Ontario Divisional Court. Southey, J., delivered the following oral judgment for the court on February 5, 1998.