K. J. P. v. City of Hamilton, 2017 CanLII 278

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE: January 06, 2017

FILE NO.: WR 143992

Assessed Person(s): K. J. P.

Appellant(s): K. J. P.

Respondent(s): City of Hamilton

Respondent(s): Municipal Property Assessment Corporation (“MPAC”) Region 19

Property Location(s): Withheld

Municipality(ies): City of Hamilton

Roll Number(s): Withheld

Appeal Number(s): 3142867

Taxation Year(s): 2015

Hearing Event No.: 639847

Legislative Authority: Section 357.(1)(d.1) of the Municipal Act, 2001, S.O, 2001, c. 25, as amended

Heard: October 28, 2016 in Dundas, Ontario

APPEARANCES:

Parties

Representative

K. J. P.

Self-represented

City of Hamilton

Val Mitchell

DECISION OF THE BOARD DELIVERED BY MARILYN SHARMA

INTRODUCTION

1K. J. P. (the “Applicant”) filed an application with the City of Hamilton (“City”) seeking a cancellation, refund or reduction of property taxes for the taxation year 2015.

2The Applicant stated that he advised the City that he is unable to meet his tax obligations because of his sickness which renders him incapable of employment.

3The Applicant is seeking a reduction, cancellation or refund of taxes under s. 357.(1)(d.1) of the Municipal Act, 2001, because of his inability to pay the taxes due to sickness.

ISSUE

4The issue before the Assessment Review Board (“Board”) is to determine whether the Applicant’s property taxes for the taxation year 2015 should be cancelled, reduced or refunded because of the Applicant’s inability to pay due to sickness.

DECISION

5The Board finds that based on the evidence before it:

a. The Applicant has demonstrated to the satisfaction of the Board that he is unable to meet his property tax obligations for taxation year 2015 as set out in s. 357.(1)(d.1) of the Municipal Act, 2001, because of his sickness which is confirmed by his medical practitioner’s reports.

b. The Applicant’s finances are restricted to a fixed sum of $970 per month while his expenses exceed his fixed income by approximately $600 per month leaving him no opportunity to meet his tax obligation.

6The Board accordingly grants a cancellation of the property taxes for 2015 in the amount of $2,071.59 on the property located at (address withheld).

REASONS FOR DECISION

Legislation

7Section 357.(1)(d.1) Municipal Act, 2001 states that:

357.(1) Upon application to the treasurer of a local municipality made in accordance with this section, the local Municipality may cancel, reduce or refund all or part of the taxes levied on land in the year in respect of which the application is made if,

(d.1) the applicant is unable to pay taxes because of sickness or extreme poverty;

8In order to satisfy the condition set out above, a two part test is applied. The first part of the test is for the Board to determine if sickness or extreme poverty exists. If neither condition is met, then the application fails. The second part of the test is that if either condition is present, the Applicant must demonstrate to the satisfaction of the Board an inability to pay some or all of the taxes.

Applicant’s Evidence

9The Applicant presented two letters from his medical practitioner which confirmed certain medical conditions which render the Applicant incapable of being employed.

10The medical practitioner’s letters also state that because of the Applicant’s ongoing medical condition he is unable to predict if or when the Applicant may resume working.

11The Applicant informed the Board that his only assets are the property he owns at (address withheld) and a motor vehicle.

12The Applicant indicated that he owned no other assets, physical or financial.

13The Applicant advised the Board that he has a mortgage against the property in the amount of $75,000. He presented evidence to support his claim and stated that the principal, interest and property tax payments amounted to $7,020.00 for the year 2015.

14The Applicant presented evidence to outline his monthly income and expenses as follows:

Income:

Pension/Social Assistance/CPP $ 970.00

Total $ 970.00 per month

Expenses:

i. Mortgage, Interest, Taxes $ 413.16

ii. Home Insurance & Auto $ 201.00

iii. Food $ 300.00

iv. Medication $ 30.00

v. Telephone $ 153.88

vi. Hydro/Water $ 150.00

vii. Fuel(Furnace) $ 108.00

viii. Gasoline $ 100.00

ix. Repair to Auto $ 80.00

x. Misc. expenses $ 25.00

Total $1,561.04 per month

15The Applicant provided the Board with copies of Bank Statements for the year 2015 which show a regular source of income being $970 per month from the Ontario Disability Support Program (“ODSP”) allowance received.

16The Applicant provided the Board with documents to verify the various categories of expenses and the various individual amounts that are incurred on a monthly basis for total of $1,561.04 per month.

Board’s Analysis

17The test under s. 357.(1)(d.1) refers to whether the Applicant is unable to pay property taxes due to sickness or extreme poverty.

18The Board has reviewed the medical reports submitted by the Applicant with regard to his sickness. The medical reports confirm that the Applicant has been receiving treatment for his health condition since 2006. The medical reports submitted are current both having been issued in October 2015 and March 2016 respectively. The Board accepts the medical reports as valid.

19The Board considered the evidence presented regarding the Applicant’s income and expenses. The Board accepts the income as stated since this was corroborated by the Notice of Assessment from Canada Revenue Agency for the taxation year 2015.

20The evidence pertaining to monthly expenses was reviewed by the Board. The Applicant provided satisfactory information pertaining to the various categories of expenditures and the amounts expended against each category. The Board and the City found that the expenses were reasonable and verifiable.

21The Board notes that the monthly expenses listed by the Applicant exceeds his fixed income by approximately six hundred ($600) dollars per month and does not leave him any room to make full payment of property taxes.

CONCLUSION

22In viewing an application under the Municipal Act, 2001, the Board does not only look at the income and expenses of the Applicant but also looks at the full spectrum of the Applicant’s financial resources available to him/her and determine whether there was any opportunity that would allow him/her to mitigate the tax obligation as well as to consider whether the Applicant has taken deliberate steps to this direction.

23In the Board’s view, the threshold for individuals to qualify under this section of the Act is not simply that the individuals are unable to make ends meet in the year under appeal but must demonstrate that they have called upon all available resources in an effort to mitigate their tax obligation.

24The Board finds that based on the evidence before it the Applicant has demonstrated that he is unable to meet his property tax obligations for taxation year 2015 as set out in s. 357.(1)(d.1) of the Municipal Act, 2001, because his sickness renders him unable to work. The Board further finds that with a monthly income restricted to his ODSP payment of $970 per month and the basic monthly expenses of $1,561 leaves him no opportunity to meet his tax obligation.

25The Board accordingly grants a cancellation of the property taxes for 2015 in the amount of $2,071.59 on the property located at (address withheld).