The City of Ottawa is taking the federal government and Canada Post to court over a $22-million shortfall in what it expected to collect in lieu of taxes for 2021 and 2022.
Not having that money “affects our budget significantly,” Ottawa Mayor Mark Sutcliffe told reporters on Wednesday.
The Payments in Lieu of Taxes Act establishes a system to compensate municipalities to account for federal properties located within city boundaries.
The city said in a Federal Court filing that Ottawa is home to “a vast number” of federal properties that are immune from local taxes.
The city collects more than $170 million each year in lieu of taxes on federal property based on the provincial business education tax rate.