The Federal Court has sided with the National Capital Commission in its tax battle with the Municipality of Chelsea over Gatineau Park.
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In late 2021, Chelsea went to Federal Court for judicial review of the NCC’s decision to override the recommendations of a federal advisory panel, which said the Crown corporation should give the municipality $1.4 million for payment in lieu of property taxes for the years 2018 through 2020. The municipality argued the NCC was dutybound to follow the recommendations of the federal advisory panel.Article contentIn his ruling, Pamel said the NCC is not legally bound by the advisory panel decision and can deviate from its conclusions “if it is of the opinion that these conclusions do not comply with the principles applicable to property taxation.”
The Municipality of Chelsea said that the valuation was less than half of what the advisory panel recommended. Meanwhile, the NCC welcomed the Federal Court decision, which backed its argument that the property in question must be evaluated based on its use as a conservation park.
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