I heard someone the other day that the same was true out in the country.  The car in question was not a race car, but was tucked behind a building which no one could even see.  Because it was not licensed it had to be dealt with. 

Just duct tape a flower pot on the roof and call it "yard art". I don't believe there's a regulation on the size or type of a planter used in your garden.

I had the same thing happen to me! I had my enduro car and my truck in my drive way and city came out and said the same thing to me but the guy that came out was cool and liked racing, he told me you can only have one unlicensed car in your drive. His advice was to put my truck on my trailer and leave the car in the drive way. He said that if its on the trailer it is covered by the plate on trailer. It sucks that this happens to some of us and we all can't have BMW's and a staff to cut our grass. Anyway I did as he said and when he came back to check he said I was with in the by-laws. Hope this helps in feel your pain.

Tell the bylaw officer it is a float for the Gay Pride parade your working on and if he bothers you again you will have him brought up on charges in front of the Ontario Human Rights Commission .

From the Stands is right, you just need to show him a printout, or roster from Delaware. I had a similar situation with my Acura. I was very nice to him, and explained what it was, and showed him my 6th in a feature (with pictures). He actually thought it was pretty cool. The neighbour who complained was one I caught punching his puppy (yes a dog), and I tuned him up, and called police.