Brian Skakun was convicted in 2011 of violating the Freedom of Information and Protection of Privacy Act and fined $750.
Skakun's trial heard that he gave the CBC a report related to harassment complaints against a high-ranking member of the local RCMP detachment.
Skakun, who has already lost an appeal in B.C. Supreme Court, asked the Appeal Court to overturn the conviction, arguing the act is vague about whether the law applies to municipal councillors.
But the Appeal Court has released a unanimous ruling upholding the conviction, concluding the law was clearly intended to apply to elected officials such as councillors.
Skakun, who was the first elected official to be found guilty of breaking B.C.'s privacy laws, apologized to his fellow council members in October 2011.