Assessment Review Board
Commission de révision de l’évaluation foncière
ISSUE DATE:
November 16, 2020
WR 166895
Assessed Person(s):
M.R.
Applicant(s):
A.R.
Respondent(s):
City of Toronto
Property Location(s):
Address withheld
Municipality(ies):
City of Toronto
Roll Number(s):
Roll number withheld
Appeal Number(s):
3374556
Taxation Year(s):
2019
Hearing Event No.:
733064
Legislative Authority:
Section 323(1)(e) of the City of Toronto Act, 2006, S.O. 2006, c. 11, Sched. A
APPEARANCES:
Parties
Counsel*/Representative
A.R.
Self-represented
City of Toronto
Graham Thomson* and Selena Mynttinen
HEARD:
October 5, 2020 by telephone conference call
ADJUDICATOR(S):
Margarita Okhovati, Member
DECISION
OVERVIEW
1A.R. (“the Applicant”) filed an application to the City of Toronto (“City”) to have her 2019 property taxes cancelled, reduced or refunded because she was unable to pay, due either to sickness or extreme poverty, under s. 323(1)(e) of the City of Toronto Act, 2006, S.O. 2006 c. 11, Sched. A (“Act”).
2The City has passed a by-law delegating its authority to determine such applications to the Assessment Review Board (“Board”) under s. 323(11) of the Act.
Background
3The Applicant testified that after her father passed away on May 1, 1998, her mother became the Estate Trustee of her father and after her mother passed away on April 10, 2008, she became the Estate Trustee of her mother, The Applicant stated further that she has a brother, who is the co-owner of the subject property. Her brother allowed the Applicant to live in the house with the condition that she takes care of the property and pays all the expenses including the property taxes. The Applicant stated that the ownership of the house remained under their parents’ name and that she and her brother did not attempt to transfer the ownership under their names for personal reasons. She stated further that she is the only occupant of the subject property.
Areas of Agreement
4The City submitted that according to the provisions set out in s. 323(2)(b) of the Act, an Estate Trustee who is the occupant of a property, is eligible to make an application under s. 323 (1)(e) of the Act for tax relief.
Issues for the Hearing
5The main issue before the Board is whether the Applicant’s 2019 property taxes should be cancelled, reduced or refunded due to her inability to pay because of sickness or extreme poverty. This requires the Board to determine:
if the Applicant was unable to pay her 2019 property taxes; and
if the Board determines she was unable to pay her property taxes, the Board must then determine if the reason she was unable to pay was either sickness or extreme poverty.
6Finally, if the Board determines that she was unable to pay because of sickness or extreme poverty, the Board must then decide on the amount of the property taxes levied in 2019 to be cancelled, reduced or refunded.
Result
7The Board finds that the Applicant failed to demonstrate that she was unable to pay the property taxes levied in 2019. The Application is dismissed.
ANALYSIS
Issue 1 – Was the Applicant able to pay the property taxes levied in 2019?
8The Applicant submitted an incomplete Financial Information Form, especially the expenses. Based on the submitted documents, the monthly income, approximate expenses, assets and liabilities are as follows:
Income Total $1,426.00
Expenses Total $1,655.83
Net Total $ - 229.83
Assets
Estimated average value of the subject property in 2019 $821,000
RRSP $ 11,712
Assets Total $832,712
Liabilities
Line of Credit $14,866.00
Credit Card $10,487.33
Property Tax $ 2,897.10
RBC Account $ 112.68
Liabilities Total $28,363.11
Net Worth Total $804,349.44
9The City’s position is to dismiss the application for the following reasons:
10The City submitted that the subject property is mortgage free.
11The City noted several expenditures that, in its view, appeared to be outside of what a household would experience as monthly costs related to meeting the necessities of living. Specifically, the City raised the question of discretionary expenditures in the credit card statements. For example, over $1,000 for groceries and meals from outside, $3,834.94 for pet expenses, $800 for lawn care, $600 in charity donations, $330 for home entertainments and lottery tickets.
12The City submitted and the Applicant agreed on the average value of the subject property of $821,000. Considering the total liabilities, the equity in the subject property amounts approximately $792,637. The Applicant has to leverage the equity in the property before filing this application.
13The City submitted further that the Applicant is in possession of $11,712 in RRSP. According to the Applicant’s testimony, last year she was unable to withdraw to pay her property taxes but this year she will be able to do so. In the opinion of the City, this financial position does not meet the test of extreme poverty.
13The Applicant testified that she agreed with the City’s submissions. She stated,
..it was discretionary to pay my pet’s and other expenses rather than paying property taxes. I had no recourse and if I knew it, I would not go through so much work for filing this application.
14There were several deposits and withdrawals in the Applicant’s RBC bank account. When asked to explain, the Applicant stated that she did not recall.
Findings on Issue 1
15The monthly income of the Applicant as reported is $229.83 less than the total monthly expenses incurred in 2019. Despite the monthly average shortfall demonstrated by the incomplete documents, the Board finds that the Applicant was able to pay her monthly taxes of $492.87 in 2019.
16The Board finds that the Applicant has prioritized to pay her other expenses than her property taxes by withdrawing money from her line of credit. She failed to demonstrate that she was unable to pay the property taxes levied in 2019.
CONCLUSION
17Having decided that the Applicant was able to pay her taxes in 2019, the Board has no reason to consider whether the Applicant is in a condition of sickness or extreme poverty.
ORDER
18The Board orders that the application is dismissed.
"Margarita Okhovati"
MARGARITA OKHOVATI
MEMBER
Assessment Review Board
A constituent tribunal of Tribunals Ontario
Website: www.tribunalsontario.ca/arb
Telephone: 416-212-6349 Toll Free: 1-866-448-2248