How one of Toronto’s most lucrative companies ended up on the list of the city’s largest tax debtors

One of the city’s oldest and most famous sports companies is on a dubious list.

Maple Leafs Sports and Entertainment — owner of the Toronto Maple Leafs and the Toronto Raptors, among other professional sports franchises — has been named one of Toronto’s largest property tax debtors, with an unpaid bill of approximately $1.18 million dating back to the tax year 2019 .

That number came to light at the city’s General Government Commission meeting in April, when the annual list of the top property tax debtors with more than $500,000 in back taxes was made public.

MLSE disputes that charge and says it is in talks with the city to resolve the issue.

Regardless of what goes on behind the scenes in terms of appeals or negotiations, a councilor and former Exhibition Place board member says MLSE should foot the bill now and try to recover the money later if it believes it has been unfairly taxed .

“I can’t imagine what it would be like for the city council if the tax money stopped flowing every time someone raised a problem or appeal,” says the alderman. said Stephen Holyday. “That’s why people are still expected to pay their taxes, and then the process will unfold in a very organized way and the accounting will be done at the end of that process to make things right.

“But in the meantime, the taxes still have to be paid to the city.”

MLSE says it does not own or rent BMO Field

The disagreement is over BMO Field at the City-owned Exhibition Place. Traditionally, organizations that rent at a fairground pay property taxes to the city as part of their rent payments.

MLSE’s Toronto FC and the Toronto Argonauts both play outside the stadium. But MLSE said in a statement to CBC Toronto that it operates at BMO Field under a “management agreement” with the city, and that the teams pay the city a “occupancy fee” — not rent. As a result, they shouldn’t be tagged with a property tax like traditional Exhibition Place tenants such as Medieval Times or the Liberty Grand, the company argues.

“Ultimate responsibility for payment of property taxes rests with the owner,” the MLSE statement read. “And MLSE is neither the owner of the property nor a tenant.”

The company says there is a discrepancy between the agreement with the city over BMO Field and the other two Exhibition Place properties it leases for the Leaf’s minor league team, the Marlies, and for the Raptors’ practice facility.

“As it is well known, MLSE leases two properties on the Exhibition Place grounds, OVO Athletic Center and Coca-Cola Coliseum, where all rents and taxes for which it is responsible have been duly and punctually paid,” the MSLE statement read.

MPAC says it has determined the field is taxable

The BMO Field controversy appears to have started in 2016 when MLSE finished expanding and upgrading the facility. Those renovations caught the attention of the Municipal Property Assessment Corporation (MPAC), the agency tasked with determining the value of every property in the county and relaying that information to municipalities so they can determine how much the owners owe. have to pay property taxes.

“BMO Field was previously tax-exempt,” MPAC said in an email to CBC Toronto. “There were renovations and additions to BMO Field in or around 2016 that required MPAC to review the entire property. In addition, MLSE entered into a new management agreement for BMO Field in 2014, which was not provided to MPAC until 2018.”

The statement goes on to say that MPAC analyzed that agreement along with several other documents and relevant case law and determined that the MET field should be “taxable”. Citing legal obligations, MPAC says it was necessary to make the property taxable from 2018.

That decision was made in 2020 and MLSE appealed the estimated value, but those appeals have been resolved and MPAC’s decision stands, it says.

“If MLSE wants BMO Field to be exempt from tax, it would have to file MPAC and the City of Toronto with an application under section 46 of the Assessment Act for an order exempting BMO Field from tax. The application would be heard in the Superior Court of Justice,” the MPAC statement read.

MPAC says it has not been served with such a request.

Exhibition Place’s CEO is hoping for a solution by the fall

City officials appear to be brushing off the controversy and directing investigations to the board of Exhibition Place, the city agency that manages the property and collects taxes on behalf of Toronto.

Exhibition Place CEO Don Boyle declined to name the company that was overdue.

He told CBC Toronto that he is confident an agreement will be reached. But until that happens, “we prefer our sole tenant who doesn’t pay taxes right now — and don’t believe they should pay taxes — we think they should pay their taxes and then we’ll see what the results of the appeal are at the end of the day.

“Currently they get 1.25 percent interest per month on the outstanding tax balance, so that will add up over time. It’s always better to pay your taxes while you object.”

“They are an excellent tenant,” he added. “They are a great partner here on our property in so many ways, we just hope it gets sorted out as soon as possible.”

Boyle said he expects the disagreement to be resolved by the fall.

MLSE says it is confident that the issue will be resolved fairly at the end of the day.

“We continue to work with the City and Exhibition Place to find a fair and equitable resolution to address this change of position by MPAC, which does not reflect the intentions all parties had for BMO Field and how it had been treated until 2016.”