Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE: November 22, 2019

FILE NO.: WR 162553

Assessed Person(s): J.Y. and M.Y.

Applicant(s): J.Y. and M.Y.

Respondent(s): City of Hamilton

Property Location(s): Withheld

Municipality(ies): City of Hamilton

Roll Number(s): Withheld

Appeal Number(s): 3369569

Taxation Year(s): 2018

Hearing Event No.: 724776

Legislative Authority: Section 357(1)(d1) of the Municipal Act, S.O. 2001, c. 25

Heard: October 23, 2019 in Hamilton, Ontario

APPEARANCES:

Parties

Representative

J.Y. and M.Y.

Self-represented

City of Hamilton

Irwin Sampat

DECISION OF THE BOARD DELIVERED BY DAN WEAGANT

INTRODUCTION

1J.Y. and M.Y. (the “Applicants”) filed an application with the City of Hamilton to have their 2018 taxes reduced, cancelled or refunded because they were unable to pay due either to sickness or extreme poverty, under s. 357(1)(d1) of the Municipal Act, S.O. 2001, c. 25 (“Act”).

2The City of Hamilton has passed a by-law, delegating its authority to determine such applications to the Assessment Review Board (the “Board”) under s. 357(11) of the Act.

ISSUE

3The issue before the Board is whether or not the Applicants’ 2018 property taxes should be cancelled, reduced or refunded due to their inability to pay because of sickness or extreme poverty. This requires the Board to decide on a number of things. First the Board must determine, based on the evidence at the hearing, if the Applicants were unable to pay their 2018 property taxes. If the Board determines they were unable to pay their property taxes, the Board must then determine if the reason they were unable to pay was either sickness or extreme poverty.

4If the Board determines that the reason was sickness or extreme poverty, the Board must then decide on the amount of the taxes levied to be cancelled, reduced or refunded.

DECISION

5The Board finds that the Applicants did not demonstrate that they were unable to pay the property taxes levied in 2018. The Application is dismissed.

REASONS FOR THE DECISION

Were the Applicants Able to Pay the Property Taxes Levied in 2018?

6The Applicants reported an annual family net income for 2018 of $128,863, rounded. This amount includes $16,907 in payments from the Government of Canada (HST credits and CPP), $22,033 from the Workplace Safety and Insurance Board (WSIB) and $89,923 from employment income. The average household income per month was $10,746, rounded.

7The Applicants reported that monthly financial activity for the household was transacted through four separate accounts. Two are joint accounts held by the Applicants, one is held by M.Y. and the fourth is held by the Applicants’ son. Frequent transfers between these accounts occurred over the course of 2018. The total balance of the accounts on January 1, 2018 was approximately $5,183. The balance on December 31, 2018 was approximately $6,130.

8The Applicants submitted that the subject property has a value of approximately $400,000. There are two mortgages held by TD Canada Trust. The first is a term mortgage with set monthly payments in the amount of $610.74. The principal balance of that mortgage on December 31, 2018 was $12,238. The second is a revolving line of credit with a principal balance on December 31, 2018 of $20,955.

9Monthly expenses reported by the Applicants for 2018 totaled approximately $8,394 per month. This figure was determined from his testimony and the documentary evidence submitted in the form electronic records of activity on the four bank accounts, the revolving line of credit and activity on one credit card. These expenses are summarized as follows (all rounded to the nearest dollar):

• Mortgage payments: $611

• Line of credit payments: $5,236

• Groceries & household supplies and clothing: $680

• House and Automobile Insurance: $181

• Utilities (gas, electrical, water): $305

• Car Expenses (fuel, repairs): $400

• Internet, cable, phone: $304

• Bank Fees: $31

• Other, (school, computer): $158

• Property taxes: $488

10The Applicants submitted that they require the equivalent amount paid in property tax to support their household expenses and that a refund of the 2018 taxes paid would allow the family to improve their standard of living.

City’s Submissions

11The City submitted that the evidence before the Board strongly suggested that the Applicants not only were able to pay the property taxes in 2018, the total family income clearly indicates that monthly commitments are being met and that the monthly expenses declared by the Applicants were approximately $2,350 less per month than the household income.

12The City submitted that the property tax account in the City’s records indicated a balance owing of zero for the 2018 taxation year.

13Because the account was fully paid and that there are monthly funds available each month in the household finances, including a bank balance of more than $5,000, the City submitted that the Applicants have proven they were able to pay their property taxes in 2018, while still meeting their other financial commitments and therefore are not eligible for a refund of those taxes under the Act.

Board’s Analysis

14J.Y. suffers from multiple afflictions that, according to his physician, render him unable to work and unlikely to ever be able to work. These conditions affect both his physical and mental health. He spends a great deal of time alone at home or in the local neighbourhood. M.Y. works almost every day of the week in an effort to provide for J.Y. and their son, who attends a concurrent program at community college and university.

15A number of salient facts are clear in this case from the evidence submitted. Firstly, the monthly income, as compared to the monthly expenses is higher by an amount exceeding $2,500. The comparison of monthly income and expense is a common measure used by the Board to calculate if basic household needs can be met, prior to determining if Applicants can meet the property tax obligation.

16However, monthly finances are not the only measure used by the Board to determine if the Applicant were able to pay property taxes. The Board regularly reviews overall financial conditions, including mortgage and other debts owing, credit card debt and other loans or commitments.

17In this case, the Applicants testified that their credit cards are paid in full monthly and those payments for the expenses incurred and not otherwise reported are included in these payments. There is no reported debt except for relatively small first and second mortgages that are also kept current.

18The family did not have any financial difficulties in 2018. The evidence at hearing clearly shows that the family income was more than adequate to meet the monthly financial commitments. Accordingly, they have failed to demonstrate that they were unable to pay the property taxes in 2018.

19The application is therefore dismissed.