OTTAWA – The federal government will have to dig into its pockets and pay more in municipal taxes for historic sites, following a Supreme Court decision rendered Friday.
The country’s top court has sided with the city of Halifax, against the federal government, in a tax case involving the Citadel Hill site.
The case has repercussions on other municipalities with historic sites.
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Halifax values the Citadel land at $42 million – which is eight times more than the federal evaluation. That’s because Ottawa says the lion’s share of the land is only worth $10, since it has no commercial value.
The court rejected that argument. It has sent the file back to the Department of Public Works and asked it to come up with a more equitable valuation.
“It can hardly be thought either fair or equitable to conclude that 42 acres in the middle of a major metropolitan centre has no value for assessment purposes,” the court judgment said.
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