A Northern council is appealing against the Federal Court's dismissal of its case to recoup more than $1.7 million in supposedly unpaid rates from the owners of Launceston Airport.
The Northern Midlands Council held a special meeting on Monday in which it considered legal advice on the court's recent decision regarding the council's case against Australian Pacific Airports and the Commonwealth.
Acting mayor Richard Goss said it was formally resolved that the council appeal against Justice David O'Callaghan's decision.
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"Council is deeply concerned that such a decision will have significant impact on the council into the future," Cr Goss said in a statement on Tuesday.
The long-running issue dates back to 1998, when airports were privatised in Australia and the federal government began entering into long-term leases with private airport operators.
The Northern Midlands Council alleges it's owed $1.79 million in unpaid rates due to a non-legally binding Commonwealth requirement that airport lessees pay councils a rates equivalent which would otherwise be paid if the airport wasn't situated on Commonwealth land.
A Launceston Airport spokesman said an appeal would be "yet another speed-bump to getting on with the meaningful job of jointly investing in developing travel to and from this region".
"We remain ready as ever to have that conversation [with the council]," the spokesman said.
"Legal/court costs were awarded against the council for its last court action and we are really disappointed that the council intends to double down on its claims, putting even more of its ratepayers' money at risk."
Australian Pacific Airports and the Commonwealth argued in the Federal Court that the council didn't have a say in the matter due to it not being party to the lease agreement.
The case was heard together with that of Clarence City Council, which was contested on similar grounds regarding Hobart Airport.
Both the Northern Midlands Council and Clarence City Council argued in court hearings that they'd been shortchanged rate payments after the value of airport sites increased in 2013 following a review by the state's Valuer-General.
However, the Commonwealth engaged a private independent valuer, Herron Todd White, which arrived at different valuations by using alternative methodologies.