07/03/2013 03:24 EDT | Updated 09/02/2013 05:12 EDT

Federal panel to hear arguments in Halifax's Citadel Hill tax dispute

HALIFAX - The Halifax Regional Municipality says its battle with Ottawa over the value of Citadel Hill is headed to a federal dispute panel, more than a year after Canada's top court sided with the city.

Halifax spokeswoman Tiffany Chase said although Halifax has been in discussions with the federal government about the amount of taxes it owes the city for the national historic site, the matter has yet to be settled.

Chase said sending the matter to a dispute panel was part of the Supreme Court of Canada decision last June, and once the panel has heard the case, it will recommend a settlement to the federal public works minister.

The city said the property value of Citadel Hill was reassessed this year at $25.8 million.

During the court case, Ottawa argued the roughly 16 hectares of land was only worth $10 because it has no commercial value.

The Supreme Court ruled that the federal government cannot set payments based on its own property value assessments that are far lower than the provincial assessment.

Public Works said they were unable to comment Wednesday.