City of Ottawa loses court appeal over property payments

By Canadian Press on January 15, 2026.

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.

In 2025 the Federal Court said the federal government made a “reasonable” decision to pay a discounted rate for PILT, dismissing a legal challenge by the city which argued it was getting shortchanged.

The City of Ottawa claimed there was a $22 million shortfall in what it expected to collect in lieu of taxes for 2021 and 2022.

In a decision issued on Jan. 12, Court of Appeal Justice Monica Biringer says the Federal Court’s reasons were “compelling and complete.”

Biringer ordered payments of $5,000 to be made to both the federal government and Canada Post.

This report by The Canadian Press was first published Jan. 15, 2026.

Catherine Morrison, The Canadian Press