An Ontario Court of Appeal is reserving judgement on whether the province's Residual Value Charge (RVC), a forestry stumpage fee, is a legitimate or an illegal charge on hardwood mill companies.
Jim Boniferro, owner of Sault Ste. Marie's Boniferro Mill works, who challenged the fee, left a Sept. 2 hearing in Toronto, feeling confident that an earlier favourable lower court decision would be upheld.
The case was heard by a three-member panel headed by Ontario Chief Justice Warren Winkler. Boniferro says no new evidence was presented by the Crown. He expects a ruling in one to two months.
Last January, Ontario Superior Court Judge Gary Tranmer sided with Boniferro in ruling the Crown had "no lawful authority to impose" and collect the charge. But the Ontario government chose to appeal.
"Our case is pretty unique in its presentation. We believe Judge Tranmer got it right the first time and nothing has changed."
Boniferro claims he's owed $1.4 million with interest since he acquired his mill from Domtar and re-started it six years ago.
Boniferro says the value charge is an illegal tax, never passed by the Ontario Legislature, and the province has no legal authority to impose it.
Companies producing hardwood lumber haven't been assessed the charge since July 2007, because of the soft North American market. It is only assessed on veneer logs. But Boniferro says he is willing pays the rest of Ontario's other stumpage fees.
He is aware of 15 other Ontario forestry companies have also challenged the value charge. Should the RVC be ruled illegal, the Ontario government would have to give back tens of millions of dollars.
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