City’s court challenge of federal tax-like payments dismissed [Video]

A federal court has dealt a blow to Mayor Mark Sutcliffe’s Fairness for Ottawa campaign, dismissing the city’s argument that it’s getting shortchanged on payments for servicing tax-exempt government buildings.

The City of Ottawa applied to federal court to review the situation and side with it — restoring roughly $22 million in what are called payments in lieu of taxes or PILTs.

It said the federal government took advantage of a COVID-era provincial tax break meant to provide relief to struggling businesses.

But Justice Panagiotis Pamel found “nothing unreasonable.”

Public Services and Procurement Canada (PSPC) argued it was compelled to pay the lower amount by federal statute. It said the payments must reflect what a private property owner would be charged — and the judge agreed.

• Taxpayers could face 1.5% hike if city loses battle over federal properties, court docs show
• Mayor’s ‘Fairness for Ottawa’ campaign gets council support

“Ottawa seems to be trying to fit a square peg into a round hole on the …