Citadel Hill’s
decade-long
value battle
nearing end
BY DONALEE MOULTON
FOR MORE THAN 150 years,
Citadel Hill in Halifax has dominated the city it was built to protect. For over three decades, the
former fortress has welcomed
hundreds of thousands of visitors
to explore its bastions, its barracks and its artifacts.
Now a decade-long court battle
over the value of the national historic site is nearing an end. The
Supreme Court of Canada heard
arguments in December and is
expected to hand down a decision
in six months. Lawyers across the
country are watching closely to
see which way the legal pendulum
will swing.
Taxes are at the heart of the
dispute. Although the federal government is exempt from property
tax, a statute, Payments in Lieu of
Taxes Act, acknowledges the federal government owes the communities in which its property is
found some remuneration.
“The value is determined by the
federal minister of public works,”
said Dan Campbell, a partner with
Cox & Palmer in Halifax. “The
statute says the amount, in the
opinion of the minister, is the
same as if it was assessed by a pro-
fessional, and the tax rate is
reflective of the provincial rate.”
What’s being argued out in
court is “the land under the fort,
not the fortifications. It’s approxi-
mately 48.5 acres in central Hali-
fax,” said Campbell, who repre-
sents the city.
The Halifax Regional Municipality (HRM) contends the 19 hectares
of land on which the Citadel sits are
worth upwards of $19 million, or
about $500,000 a year in property
tax. The federal government, however, asserts that because the land
around the fort can’t actually be
developed, its value is a mere $10.
The minister, noted Campbell,
“said it was a national park and has
no commercial value and, therefore,
no market value.”
It’s an argument that concerns
communities throughout Canada
that also boast national historic
sites. “If they were to apply it to
every national park, we believe it
would result in substantial reduc-
tions to municipalities,” Camp-
bell said.
