The Cowichan Tribes Decision: Why Clarity on Property Rights Is Critical for British Columbia’s Economic Future
By Paul Sullivan, Principal, Regional Leader, Property Tax Complex
The recent Cowichan Tribes v. Canada decision by the British Columbia (B.C.) Supreme Court has sent shockwaves through the B.C. real estate, financial, and municipal tax systems. In August 2025, the Court recognized Aboriginal title for the Cowichan Tribes over a 7.5-square-kilometre area of southeast Richmond—land previously considered privately owned under Crown-granted title.
While Indigenous land rights must be recognized and respected, this ruling has raised profound questions regarding the certainty of private property ownership in B.C. and the implications for taxation, municipal finance, and investment stability.
A Precedent with Broad Implications
The Court’s decision declared certain Crown and municipal titles “defective and invalid.” Legal experts caution that this precedent could extend beyond the immediate Richmond area, potentially affecting millions of properties across the province.
The issue is not limited to the parties in this case. Property owners, developers, and lenders now face billions of dollars in potential equity losses and severe disruption to transactions, refinancing, and insurance renewals. For many, these are not abstract risks—they are immediate and material impacts.
The Property Tax Paradox
Municipalities rely heavily on property taxes as their primary revenue source. Yet the Cowichan Tribes decision has created a paradox: owners are being taxed on land whose ownership status is now legally uncertain, causing a dramatic imbalance in fairness and policy.
Should property owners continue to pay full taxes when the legal validity of their title is in question? And how should municipalities balance their fiscal obligations with equity considerations for affected taxpayers?
Potential Avenues for Relief
Two existing policy mechanisms could offer meaningful support to impacted owners:
- Revitalization Tax Exemption: The City of Richmond could pass a bylaw granting temporary tax relief—up to 10 years—for affected properties, while the province matches relief for the school tax portion of the bill.
- Permissive Tax Exemption: The City may also choose to exempt affected properties from municipal taxation altogether until ownership issues are resolved.
These measures are within the legal framework and would provide a fair, temporary bridge for taxpayers until the courts bring clarity to land title.
The Broader Policy Question
The Cowichan Tribes decision is not occurring in isolation. It builds upon a complex policy landscape and reveals the lack of cohesive planning around how Indigenous title coexists with existing property law. Without coordinated legal and policy reform, the risk becomes greater, undermining investor confidence and the stability of the housing and development markets.
The Path Forward
As we navigate this unprecedented moment in Canadian property law, one principle must remain at the center: fairness. Governments at all levels must act decisively to:
- Provide interim tax and debt protection for affected property owners;
- Collect and disclose data on the number of impacted properties and mortgages; and
- Establish clear frameworks that reconcile Indigenous land rights with property title and taxation systems.
These steps are essential to not only restore confidence in the property market, but also to ensure that reconciliation efforts proceed in a way that supports economic stability and fairness for all parties involved. Ryan continues to fight for reduced values for property taxation and advocating for tax relief through statutory provisions.
Homeowners, business operators, and large employers who have acted in good faith—purchasing, leasing, and paying taxes under the assumption of valid title—should not bear the financial burden of legal and policy gaps between levels of government.
Ensuring stability and fairness in taxation is not just a legal necessity—it’s a moral one. The Cowichan Tribes decision offers an opportunity for all stakeholders to engage in a transparent dialogue about how ownership, equity, and reconciliation can coexist in British Columbia’s future.
Ryan’s focus has always been with regard to fairness in taxation. As a global Firm focused exclusively on business tax, Ryan is uniquely capable to help clients evaluate and identify where they have overpaid taxes and demonstrate the tax implications of this ruling moving forward.
In light of this ruling, Ryan has initiated a mass property tax appeal on behalf of Richmond taxpayers (commercial, industrial, and residential) seeking to reduce assessed values and lower the tax burden on affected properties.
Paul Sullivan
Principal and Regional Leader
Ryan
604.331.7300
paul.sullivan@ryan.com