20030703
2003NSSC140
S.Y.No. 6444
COASTAL FINANCIAL CREDIT UNION LIMITED
Plaintiff
- and -
LUKE DANIEL MULLEN and TAMMY CHURCHILL
Defendants
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LIBRARY SHEET
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HEARD: Before the Honourable Justice Charles E. Haliburton
at Annapolis Royal, Nova Scotia, on the 5th day
of June, A.D. 2003
DECISION: The 5th day of June, A.D. 2003
SUBJECT: Foreclosure; Sheriff’s obligations/report; Business
Occupancy Tax
SUMMARY: On foreclosure sale, Sheriff received from the Municipality a certificate for taxes outstanding including Business Occupancy Tax on commercial property being foreclosed. Mortgagee objected to the payment of occupancy tax in priority to its mortgage/judgment.
ISSUE: Is Business Occupancy Tax a lien on real property?
RESULT: A review of the specific sections of the Municipal Government Act NSS Statutes 1998 ch. 18 relating the creation of lien, that is, Sections 128 (a), 129 (a) and 133 make it clear that Business Occupancy tax does not create a lien on real estate and the interest foreclosed by the mortgagee. This is consistent with the historical context in which the Business Occupancy Tax provisions were created. The mortgage has priority over the municipality’s claim for Business Occupancy Tax.
THIS INFORMATION SHEET DOES NOT FORM PART OF THE COURT'S DECISION. QUOTES MUST BE FROM THE DECISION, NOT FROM THIS COVER SHEET.