Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE: January 16, 2019 FILE NO.: WR 157697

Assessed Person(s): A.S. Appellant(s): G.S. Respondent(s): City of Mississauga Property Location(s): Withheld Municipality(ies): City of Mississauga Roll Number(s): Withheld Appeal Number(s): 3282384 Taxation Year(s): 2017 Hearing Event No.: 707168

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

Heard: October 10, 2018 in Mississauga, Ontario

APPEARANCES:

Parties A.S. (Deceased) G.S. (Spouse) City of Mississauga

Representative C.S. Sean Doyle

MEMORANDUM OF ORAL DECISION DELIVERED BY MARGARITA OKHOVATI ON OCTOBER 10, 2018

INTRODUCTION

1This matter came before the Assessment Review Board (the “Board”) on October 10, 2018. An oral decision was rendered at that time. The Applicant requested that decision in writing.

2C.S., the Applicant’s daughter, acted as the Applicant’s representative.

3The Applicant is a 65-year old woman who lives by herself in a detached one-and-a-half story raised bungalow with three bedrooms and one-and-a-half bathrooms with no basement. The assessed value of the subject property for the 2017 taxation year is $687,000.

ISSUE

4The issue before the Board is to determine whether the property taxes of the Applicant for the 2017 taxation year should be cancelled, reduced or refunded as a result of the Applicant’s inability to pay due to sickness or extreme poverty under the Municipal Act (“Act”).

DECISION

5Based on the evidence before it, the Board determines that the Applicant’s 2017 property taxes should be reduced by 50%, from $4,771.35 to $2,385.67 ($2,386.00 rounded).

REASONS FOR DECISION

Legislation

6Section 357(1)(d.1) of the Act states that:

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 the Applicant is unable to pay taxes because of sickness or extreme poverty.

7The Act outlines a two-part test. In order for the Applicant to qualify for relief under this section of the Act, the Board must first determine whether the Applicant is able to pay her taxes. If the Applicant was able to pay the 2017 taxes, then the application fails. If the Applicant proves that she is unable to pay the taxes, the Board must then determine the reason the Applicant is unable to do so. Relief can only be granted if the Applicant is unable to pay, based on either sickness or extreme poverty.

EVIDENCE AND ANALYSIS

Applicant’s Evidence and Position

Ability to Pay

8In determining whether the Applicant has the ability to pay her taxes, the Board has to consider the evidence presented by the Applicant regarding her financial situation, which is not limited to her income and expenses. The Applicant submitted that in 2017, she was living in extreme poverty and was unable to pay her property taxes.

9The Applicant stated that she has been living alone after her husband passed away in 2012. She stated that she has two daughters who are not married and live in separate addresses and sometimes assist the Applicant financially. The Applicant stated further that she is a piano teacher but stopped teaching after she was involved in two accidents.

Applicant’s Financial Evidence

10The Applicant submitted a copy of completed Form 1 – Financial Information and also provided evidence at the hearing regarding her monthly income and expenses, assets and liabilities as follows.

Income Total $1,896/month Expenses Total $1,842/month Net Total $+54.00month

Assets Assessed value of the house in 2017 $687,000.00 Cash $ 1,025.08 Assets Total $688,025.00

Liabilities Mortgage $130,000.00 Liabilities Total $130,000.00

NET WORTH TOTAL $+558,025.00

11Based on the information submitted in the Financial Information Form, the net worth of the Applicant is $558,025.00.

Sickness

12The Applicant testified that she was involved in two separate accidents: in November 2015, she broke her arm and wrist, and; in August 2017, she broke her right hand. C.S. stated that the Applicant also has cognitive issues and depression after her husband passed away in 2012. The Applicant submitted a letter from a doctor in Trillium Health Partners in support of her accidents.

City’s Evidence and Position

13Sean Doyle, representative for the City stated that the Applicant’s status of property tax appeals as of 2013 is as follows:

Property taxes for 2013 was $4,109.68 – reduced by 50% Property taxes for 2014 was $4,260.26 – Rejected Property taxes for 2015 was $4,394.00 – Cancelled Property taxes for 2016 – Unknown – City Representative did not specify the status of the 2016 property tax appeal.

Board’s Analysis

14The intent of the legislation is to provide relief for property owners who cannot pay their property taxes in full or in part