US EditionCity of Ottawa loses court appeal over property payments
The court confirmed the federal government’s discounted payments in lieu of taxes for 2021-2022, resulting in an alleged $22 million shortfall for Ottawa, city officials said.
- The Federal Court of Appeal dismissed Ottawa's challenge to PILT payments on Jan. 15, 2026, refusing to overturn a lower court ruling regarding federally owned, tax-exempt properties.
- The City of Ottawa argued it lost about $22 million in expected PILT payments for 2021 and 2022 after the federal government used a COVID-era provincial tax break to calculate them.
- The lower court had previously found the Federal Court made a reasonable ruling, and Justice Monica Biringer called those reasons 'compelling and complete' in her Jan. 12 decision.
- The city will review the appeal court decision and ask external lawyers whether pursuing leave to appeal to the Supreme Court of Canada is advisable, with estimated costs of $50,000 to $70,000 and $5,000 ordered to Canada Post and the federal government.
- By affirming the courts' approach, the decision shapes how Ottawa's municipal revenues and PILT calculations are affected, after Mayor Mark Sutcliffe re-sparked the debate in summer of 2024.
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City of Ottawa loses court appeal over property payments
OTTAWA — The Federal Court of Appeal has dismissed a City of Ottawa request to overturn a lower court decision about property payments on federally owned buildings. The decision relates to the payments in lieu of taxes the federal government pays the City of Ottawa in place of property taxes, which are known as PILT. […]
City of Ottawa loses court challenge on federal tax payments for buildings
The Federal Court of Appeal has dismissed the City of Ottawa’s appeal in the multi-million-dollar battle with the federal government over payments in lieu of taxes (PILTS) on federal buildings in the capital.
The Federal Court of Appeal dismissed the City of Ottawa's application for an appeal against the federal government's determination of payments in lieu of taxes. Ottawa and Gatineau have been asking the government for several years to adjust payments to municipalities for their federal buildings. Unlike other landowners, the federal government may decide to pay less. This decision greatly influences the city budget, which is based primarily on p…
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