P.S. v. Municipal Property Assessment Corporation Region 31, 2021 CanLII 105813

Tribunals Ontario

Tribunaux décisionnels Ontario

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE: October 22, 2021

FILE NO.: WR 174097

Assessed Person(s): P.S.

Appellant(s): P.S.

Respondent(s): Municipal Property Assessment Corporation Region 31

Respondent(s): Township of Laird

Property Location(s): Address Withheld

Municipality(ies): Township of Laird

Roll Number(s): Roll Number Withheld

Appeal Number(s): 3436555

Taxation Year(s): 2020

Hearing Event No.: 750472

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

APPEARANCES:

Parties	Representative
P.S.	Self-represented
Township of Laird	Jennifer Errington

HEARD: September 29, 2021 by telephone conference call

ADJUDICATOR(S): Dan Weagant, Member

DECISION

OVERVIEW

1P.S. (the “Applicant”) filed an application with the Township of Laird (“Township”) to have his 2020 property taxes cancelled, reduced or refunded because he was unable to pay, due to either sickness or extreme poverty. The application was filed pursuant to s. 357(1)(d1) of the Municipal Act, 2001, S.O. 2001, c. 25 (“Act”).

2The Township 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

3At issue in this proceeding is whether the Applicant’s 2020 property taxes should be cancelled, reduced or refunded because of his inability to pay, due to sickness or extreme poverty. This requires the Board to determine:

1. if the Applicant was unable to pay his 2020 property taxes;
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; and
3. if the Board determines he was unable to pay due to sickness or extreme poverty, the Board must then decide the amount of the property taxes levied in 2020 to be cancelled, reduced or refunded.

Result

4The Board finds that the Applicant was unable to pay the property tax levied in 2020, due to sickness or extreme poverty. Accordingly, the Board finds that the 2020 property tax levied in 2020, in the amount of $2,020.74, is cancelled.

ANALYSIS

Issue 1 – Was the Applicant able to pay his property taxes in 2020?

5P.S. testified that he had income in the amount of approximately $1,456 per month in 2020. This total was comprised of a Canada Pension Plan disability pension, GST / HST rebates, provincial and federal government income supports and loans from family and friends. The total income was verified by deposits shown in the Applicant’s bank account records for 2020.

6The household income and expenses are managed through that single bank account. The balance on that account was approximately $3,251 on January 1, 2020 and $392 on December 31, 2020.

7Monthly expenses incurred by the household in 2020 averaged approximately $1,651. These expenses are summarized as follows (all rounded to the nearest dollar):

• Mortgage payments: $820
• Utilities: $169
• Groceries and general household expenses: $220
• Loan re-payments: $259
• Ontario Trillium benefit re-payments: $24
• Bank fees: $10
• Property taxes: $149

8The Applicant testified that he also made use of local food banks and other support programs. He relied on friends and family for transportation to larger centres for grocery and other shopping needs. He also sought and received a reduction in the Current Value Assessment of the subject property to reduce it from $200,000 to $150,000 for the remaining years in the current valuation cycle.

9In the Board’s view, the Applicant made all reasonable effort to provide for himself and the upkeep of the subject property in 2020, with limited financial resources.

10The Township noted that the balance of the subject 2020 property tax account stood at $0, owing to a reduction in taxes from a previous decision of this Board.

Findings on Issue 1

11The Board must determine if the Applicant was able to pay his property taxes, based on the evidence available at the hearing. The evidence shows that the expenses attributed to basic household needs were $195 more than the income, on a monthly average basis.

12If, after meeting the necessities of life and care, applicants are not able to pay some or all of their taxes, the Board has frequently found that this indicates an inability to pay all or some of the property taxes.

13In this case, the Applicant’s necessary household expenses, as testified to, were more than the total household income during 2020. Without assistance from friends and family (some of which was in the form of repayable interest free loans) he would not have met these necessary expenses.

14This average, monthly difference in income vs. expenses supports the finding that there was no money available to the Applicant for the payment of property taxes, after all of the costs associated with the necessities of life and self-care for the Applicant are accounted for.

15The Board finds therefore that the Applicant was unable to pay the property taxes levied in 2020.

Issue 2 – Was the reason the Applicant was unable to pay their property taxes in 2020 either sickness or extreme poverty?

16As the Board has determined that the Applicant was unable to pay the property taxes levied in 2020, there remains the question of why that is the case. The Applicant testified to his disability that has led to his inability to work. Therefore, he was not able, in 2020, to earn the income necessary to pay the expenses associated with the necessities of life, while also paying the property taxes.

17The Board finds therefore, that the Applicant was unable to pay the property tax levied in 2020 due to sickness.

ORDER

18The Board orders that the property tax levied in 2020, in the amount of $2,020.74 is cancelled.