Contaminated Property Tax Assessment Reduced To Zero

In a recently reported decision of the Ontario Assessment Review Board in Mifran Investments Limited, the Board ordered the property tax assessment on a contaminated property reduced to zero.

The lands in question are located in an industrial area of the City of Brampton. They have an area of 0.39 acres and are improved with an industrial building of 3,600 square feet and some accessory office space. As a result of nickel plating activities carried on by a prior owner, both the soil and portions of the exterior wall of the building were contaminated with chromium.

The initial position taken by MPAC, the provincial agency responsible for establishing land values for the purposes of municipal taxes, was that it was prepared to reduce the land value by 50%, but maintain the building value as they had costed it in accordance with their normal practice. The owner rejected this offer on the basis that they were obliged to proceed with remediation of the property and that the cost of