The city has decided to appeal a ruling that would have seen a property tax bill for an affordable housing complex reconsidered.
In April, Court of Queen’s Bench Justice Donna Shelley ruled that St. Albert’s composite assessment review board should have taken the less-than-market-rate rents that are charged at 12 Nevada Place into account when dealing with an assessment appeal.
St. Albert Housing Society and Big Point Developments had decided to fight the property tax assessment bill for the building for the years 2014 and 2015. The property was assessed based on market rental rates, but the affordable housing units have to be rented out at least 10 per cent less below the average rental market rate.
While a similar fight saw the court rule in favour of the city over the 2013 tax bill, this time the housing society was successful.
City council has opted to appeal the ruling before returning it to the composite assessment review board.
Council approved a motion to file the appeal after an in camera discussion at the May 2 meeting.
“We support the housing society,” said Mayor Nolan Crouse in an interview. He said that support can be seen in the ongoing annual grant the city gives to the society every year. The grant has typically been more than $100,000.
But he said the decision has the potential to be precedent setting for both St. Albert and municipalities across the province when it comes to tax assessment of affordable housing.
Lawyer David McGreer has been representing the housing society.
“I understand why the city would want to appeal,” he said, noting it will be an important decision for municipalities across Alberta.
As well, everyone has the right to appeal, McGreer noted. He said the notice of appeal has been served, but it could be several months before the case is heard.
St. Albert Housing Society executive director Tash Taylor said the society’s not surprised at the city’s decision to go ahead with an appeal.
“The city has deep pockets to pay for legal action and have little to lose in appealing a decision not in their favour,” Taylor said.
