W.H.S.M. v. City of Mississauga, 2019 CanLII 5473

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE:

January 21, 2019

FILE NO.:

WR 157642

Assessed Person(s):

W.H.S.M.

Appellant(s):

W.H.S.M.

Respondent(s):

City of Mississauga

Property Location(s):

Withheld

Municipality(ies):

City of Mississauga

Roll Number(s):

Withheld

Appeal Number(s):

3334685

Taxation Year(s):

2017

Hearing Event No.:

708373

Legislative Authority:

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

Heard:

December 7, 2018 in Mississauga, Ontario

APPEARANCES:

Parties

Representative

W.H.S.M.

Self-represented

City of Mississauga

Sean Doyle

DECISION OF THE BOARD DELIVERED BY MARGARITA OKHOVATI

INTRODUCTION

1W.H.S.M., (the “Applicant”) is a 61-year old woman who lives alone in a three-bedroom and three-bathroom detached house with a parking garage. The subject property was purchased in 1998 for $220,000 and its assessed value for the 2017 taxation year is $557,000.

2The Applicant filed an application with the City of Mississauga (the “City”) seeking a cancellation, reduction or refund of property taxes for the 2017 taxation year because she says she was unable to pay her taxes due to sickness or extreme poverty pursuant to s. 357(1)(d.1) of the Municipal Act, 2001, S.O. 2001, c. 25 (the “Act”).

ISSUE

3The issue before the Assessment Review Board (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 Act.

DECISION

4Based on the evidence before it, the Board determines that the Applicant’s 2017 property taxes should not be cancelled, reduced or refunded. The Board therefore, dismisses this application.

REASONS FOR DECISION

Legislation

5Section 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.

6The 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

7In 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.

8The Applicant testified that she has a 27-year old daughter who lives in a condominium in downtown Toronto. The Applicant stated that she worked as a nurse from 1995 to 2001. She stopped working for health reasons. She stated that she started studying political science in 2017 for which she receives $9,000.00 per year for tuition fees from Ontario Student Assistance Program (“OSAP”). The Applicant stated further that the reason she decided to study political science at her age is because she has an ongoing legal case. She stated that she was pushed around and robbed by the government and suffered financially and psychologically, therefore, she wants to understand the judiciary system in this country and gain sufficient knowledge about Canadian laws to be able to fight back and chase the government. The Applicant also testified that she is on Ontario Disability Support Program (“ODSP”) and receives $395.00 per month.

Applicant’s Financial Evidence

9The Applicant submitted a copy of the Form 1—Financial Information and also provided evidence at the hearing regarding his monthly income and expenses, assets and liabilities as detailed hereunder:

Total Income

$1,182.00/month

Expenses

Mortgage

$ 0

Fuel (gas/oil)

$ 125.00

Water/Hydro

$ 100.00

Telephone (House and Cell)

$ 46.00

Cable/Internet

$ 97.00

House Insurance

$ 70.00

Car Insurance

$ 125.00

Gas/Auto Repairs

$ 125.00

Food

$ 300.00

Line of Credit interest

$ 25.00

Property Taxes

$ 289.00

Total Expenses

$1,302.00/month

Net Total

$- 120.00/month

Assets

Assessed value of the house in 2017

$ 557,000.00

Balance in CIBC checking/Visa Card

$1,109.33

Total Assets

$ 558,109.33

Liabilities

Line of Credit

$4,672.33

TOTAL NEW WORTH

$+553,437.00

10Based on the information submitted in the Financial Information Form, the net worth of the Applicant is $553,437.00.

Sickness

11The Applicant testified that she was diagnosed with a collapsed lung in 2000. She also suffers from anxiety and depression. She submitted two letters from two different doctors in support of her illness. The first doctor stated that the Applicant has a chronic inflammatory decease involving her lung as a result of repeated attacks of infection and breathing difficulties. The second doctor stated that the Applicant has been under his psychiatric care since July 1999, due to her involvement in legal issues and her dealings with the judicial system. The Applicant submitted that she was unable to pay her 2017 property taxes because of sickness.

Applicant’s Final Remarks

12“My outstanding balance on my loan makes me unable to pay my property taxes.”

City’s Evidence and Position

13Sean Doyle, representative for the City, stated that the Applicant paid all of her taxes for 2017 and previous years without compounded interest or fees. He stated further that in 2017, the Applicant received a $400 rebate from the City towards her property taxes. He made no submissions or recommendations.

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 due to sickness or extreme poverty in a given taxation year. If the Applicant proves an inability to pay the taxes, they must then prove the reason why they cannot, and only then can relief be granted.

15The Applicant presented letters from her physicians, which corroborate her sickness. The Board finds that sickness exists. The main question to be determined is, if the Applicant had the ability to pay her 2017 taxes.

16An ability to pay requires individuals to demonstrate that, after having called upon every resource available to them, and having explored every reasonable opportunity to mitigate any financial stresses, there are no means to pay some or all of their property taxes.

17The Board has considered the oral testimony of the Applicant, and has reviewed all of the evidence pertaining to her financial situation, to determine whether the Applicant is able to pay her 2017 property taxes.

18The Board finds that the Applicant had the ability to pay her 2017 property taxes for the following reasons.

19The Applicant testified that her daughter is a student and she pays her daughter $340.00 per month for her OSAP. The City Representative asked the Applicant as to why she is seeking a refund from the City considering that she helps her daughter with $340.00 every month while her monthly property taxes are $289.00. The Applicant stated that she has a verbal consent with her daughter to pay her. The Applicant was asked further as to how she was going to pay back to OSAP since she is unable to work; she stated that she will ask the Ontario Government to pay. The Applicant was asked again whether she could get a part-time job for she is able to go to school and study. She stated that she cannot work but somehow she is able to manage her time for attending school.

20Furthermore, the Board notes that the Applicant lives by herself in a three-bedroom and three-bathroom house. She was asked whether she has considered renting out a room in her house to generate more income to help her to pay her property taxes. The Applicant stated that she should not do that because the government will deduct the amount of the rent from her ODSP payment. The City Representative brought to the Applicant’s attention that she receives $395.00 per month from ODSP and certainly she make more money by renting out a part of her house. The Applicant stated that she could not rent out because that would be a hassle and make her angry.

21Furthermore, the Board notes that the subject property is mortgage free, and the equity in the house based on the 2017 assessed value is $557,000. There is no evidence before the Board to show that the Applicant has explored any option in accessing the equity in her home before making this application. In addition, the Applicant has $1,109.33 cash in the bank.

22Moreover, the Board notes that the Applicant is in possession of a car, 2009 Mercedes Benz, with monthly expense of $250.00. She also has both land line and cell telephones for $46.00 and Cable and Internet for $97.00 per month. In the Board’s view, these are discretionary expenses for someone who claims is living in extreme poverty.

23As mentioned above, the Applicant received $400.00 rebate from the City towards her property taxes, and the remaining balance of her monthly property taxes are $289.00.

CONCLUSION

24Based on the reasons stated above, the Board finds that the Applicant had the ability to pay her 2017 property taxes. In fact, the evidence reveals that she paid the 2017 taxes without compounded interest and fees.

25The Board therefore, dismisses the Applicant’s application for relief under the Act.