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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.
In a memo Friday, chief financial officer Cyril Rogers said that, after consulting with lawyers, the city believed it had grounds to appeal.
“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.
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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.
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.
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.
At the time, Mayor Mark Sutcliffe called the judge’s decision “disappointing” and reiterated the city’s belief that it was being short-changed.
“(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.
“I will continue to fight for our fair share and ensure the burden that has been shifted to local taxpayers is addressed.”
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