Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE: April 1, 2020

FILE NO.: WR 163642

Assessed Person(s): A.S.M. and H.A.

Applicant(s): H.A.

Respondent(s): City of Mississauga

Property Location(s): Withheld

Municipality(ies): City of Mississauga

Roll Number(s): Withheld

Appeal Number(s): 3368555

Taxation Year(s): 2018

Hearing Event No.: 726686

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

APPEARANCES:

Parties H.A. and A.S.M. City of Mississauga

Counsel⁺/Representative H.A. Sean Doyle, Barb Malta

HEARD: January 9, 2020 in person

ADJUDICATOR(S): Dan Weagant, Member

DECISION

OVERVIEW

1H.A. (the “Applicant”) filed an application to the City of Mississauga (“City”) to have his 2018 taxes reduced, cancelled or refunded because he was unable to pay due either to sickness or extreme poverty, under s. 357(1)(d.1) of the Municipal Act, 2001, S.O. 2001, c. 25 as amended (“Act”).

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

Issues for the Hearing

3The main issue before the Board is whether or not the Applicant’s 2018 property taxes should be cancelled, reduced or refunded due to his inability to pay because of sickness or extreme poverty. This requires the Board to determine:

1. If the Applicant was unable to pay his 2018 property taxes; and
2. if the Board determines he was unable to pay his property taxes, the Board must then determine if the reason he was unable to pay was either sickness or extreme poverty.

4Finally, if the Board determines that he was unable to pay because of sickness or extreme poverty, the Board must then decide on the amount of the property taxes levied in 2018 to be cancelled, reduced or refunded.

RESULT

5The Board finds that the Applicant failed to demonstrate that he was unable to pay the property taxes levied in 2018. The application is dismissed.

ANALYSIS

Issue 1 - Was the Applicant able to pay the property taxes levied in 2018?

6The Applicant testified that he sustained a work place accident some years ago. Since that time, he has been dependent on a disability pension for his income. When he purchased the subject property, he was in need of a co-signor to the mortgage loan. In the final arrangement, by his testimony, he was forced to agree to place the co-signor (his friend, A.S.M.) on the title to the property with a very small minority holding of less than 1%. A.S.M. resided at the subject property in 2018 but was not in attendance at the hearing. The Applicant testified that A.S.M.’s role in the proceedings is her contribution to the household expenses, estimated at $400 per month. Otherwise A.S.M. carries out a separate life from the Applicant.

7The documents at the hearing indicate total income from all sources for 2018 of $118,051. This income is made up of $28,258 from a disability pension, $3,653 from federal and provincial support programs, $9,000 in advances from an unsecured line of credit, $39,320 in advances from credit cards, $33,020 from cash deposits of unknown origin and $4,800 from A.S.M.

8These deposits to the Applicant’s chequing account reflect an average monthly income of $9,838. The single chequing account used by the Applicant had a balance of $1,252 in January 2018 and a balance of $1,325 in December 2018.

9Monthly expenses reported by the Applicant for 2018 totaled approximately $9,079. These expenses are summarized as follows (all rounded to the nearest dollar):

a) Mortgage payments: $1,660 b) Insurance: $190 c) Groceries and household supplies and clothing: $500 d) Car expenses: $50 e) Utilities: $467 f) Cell phone, telephone, cable and internet: $239 g) Medication: $100 h) Credit card payments: $1,806 i) Line of Credit payments: $1,575 j) House repairs (roof and flooring): $500 k) Woodbine Raceway and Entertainment Account: $1,992

10The Applicant did not testify to any other financial liabilities or assets.

11The City did not take a position on whether or not the Applicant was unable to pay property taxes, as the City has delegated its authority on that decision to the Board. The taxes levied on the subject property for 2018 totaled $3,845.63.

Findings on Issue 1 - Ability to Pay

12The monthly income as reported is approximately $759 more that the total monthly expenses incurred by the Applicant in 2018. Had the property taxes been paid in 2018, the Applicant would still have had approximately $430 left over each month.

Remaining Issues

13The Applicant made no submissions with respect to a condition of sickness or extreme poverty that would have made him unable to pay the property taxes. The Board, having determined that he was able to pay, has no reason to make any decision as to the Applicant’s sickness or extreme poverty.

CONCLUSION

14The Board finds that the Applicant is meeting his monthly obligations, with additional financial resources available after accounting for the amount of property taxes payable. Accordingly, he has failed to demonstrate he was unable to pay the property taxes in 2018.

ORDER

1The Board orders that the application is dismissed.