Legal Update Court, Tribunal Decisions and Impact

Jack A. Walker, Q.C.

International Property Tax Institute

March 24, 2011

Necessity and Role of Precedent

How does it establish these criteria precedents

System operates vertically but also horizontally.

“Fee simple if unencumbered”

Horizontal and Vertical

Horizontal

“Fee simple if unencumbered”

Court of Appeal - Future Court of Appeal

- Binding effect

- How it is dealt with

i.e. BCE Place Limited v. MPAC and City of Toronto

Bank Towers Decision 2010 Court of Appeal

What is the ratio decidendi?

Paragraph 23: “The simple amendment instructs the assessor to ignore

encumbrances, such as leases that are not at market

rents.”

When the income approach is taken, the assessor is, as held by

Lacourciere, J.A. to use market rents rather than actual rents.

Paragraph 24: “I also agree with the Divisional Court that this Court’s

decision in Carsons Camp supports the view that what

is to be assessed is the whole value of the land, including

the value of market value leases”

Issue:

Valuation of a special use property

i.e. brand new car assembly plan

Purpose of Appraisal:

To determine the current value of the subject

property for the purpose of the Assessment Act s.19.

Issue:

What does “current value” mean for the purpose of the Act

Is it value in use or value in exchange?

If value in exchange, how does one value

• Cost

• Sales

• Income

Where does one look for direction?

• Texts

• Articles

• Cases

1 Office Specialty

2, 3 Sun Life

4 CNR v. City of Vancouver

5, 6

7 Southam v. British Columbia 8,9

10 Schwartz v. Cook County