Tribunals Ontario

Tribunaux décisionnels Ontario

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE:

April 23, 2021

FILE NO.:

WR 168850

Assessed Person(s):

M.Z.K., H.Z.K

Applicant(s):

M.Z.K., H.Z.K

Respondent(s):

City of Mississauga

Property Location(s):

Address withheld

Municipality(ies):

City of Mississauga

Roll Number(s):

Roll number withheld

Appeal Number(s):

3420498

Taxation Year(s):

2019

Hearing Event No.:

739564

Legislative Authority:

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

APPEARANCES:

Parties

Representative

M.Z.K. and H.Z.K.

R. K.

City of Mississauga

Sean Doyle

HEARD:

February 24, 2021 by telephone conference call

ADJUDICATOR(S):

Pierre R. Lavigne, Member

DECISION

OVERVIEW

1M.Z.K. and H.Z.K (the “Applicants”) filed an application with the City of Mississauga (“City”) to have their 2019 taxes reduced, canceled or refunded because they were 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 (“Act”).

2The City has passed a by-law, delegating its authority to determine such applications to the Assessment Review Board (“Board”) in accordance with s. 357(1) of the Act.

Issues

3The main issue before the Board is whether the Applicants’ 2019 property taxes should be cancelled, reduced or refunded due to their inability to pay because of sickness or extreme poverty. This requires the Board to determine:

a if the Board determines they were unable to pay their property taxes, whether they were unable to pay due to either sickness or extreme poverty; and,

b if the Board determines that they 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

4The Board finds that the Applicants have demonstrated that they were unable to pay the property taxes levied due to sickness in 2019. The application is granted.

ANALYSIS

Issue 1 – Were the Applicants able to pay the property taxes levied in 2019

5M.Z.K. and H.Z.K have had severe medical challenges. In 2018 both underwent major surgeries which required extensive hospitalization, recovery and rehabilitation.

6Following his 2018 surgery M.Z.K. was diagnosed with a severe illness. In March 2019 he began treatment. His health did not improve. He was re-hospitalized and succumbed to his illness on November 23, 2020. He was 51 years old.

7Following her 2018 surgery H.Z.K. had a difficult recovery, more so than M.H.K. Throughout 2019 she remained ill and unable to work.

8Their son, R.K., moved back in with his parents in 2017 to assume their care. Upon his father’s passing at the end of 2020 he assumed executorship of his estate and learned for the first time of this application for refund of taxes.

9R. K. testified on behalf of his parents. He gave the following account of the family’s finances, summarized in the following tables:

Assets / Liabilities

Assets

Description

January 2019

December 2019

M and H jointly

House

$697,000.00

$697,000.00

Chequing Account #1

$14.56

Chequing Account #2

$3,204.53

$3,165.84

Total Assets

$700,180.00

Liabilities

Description

January 2019

December 2019

M and H jointly

Line of Credit #1

$2,094.93

$7,958.97

Line of Credit #2

$9,967.21

$10,118.07

Mortgage

$460,000.00

H only

Credit Card #1

$534.92

0

Credit Card #2

0

$2,771.92

Total Liabilities

$480,848.96

Net Assets

$219,331.44

Income / Expenses

Average Monthly Income

December 2019

M only

Canada Pension Plan and Ontario Disability Support Plan

$956.00

U of T

$100.00

H only

Canada Pension Plan and Ontario Disability Support Plan

$956.00

Ontario Disability Support Plan Rebate

$958.00

R. K.

After Tax Income

$857.00

Total Average Monthly Income

$3,827.00

Average Monthly Expenses

M and H jointly

Mortgage

$2,702.24

Property Tax

$454.00

House Insurance

$111.32

Electricity

$100.00

Water

$50.00

Telephone, Cable, Internet

$184.69

Car Payment

$342.00

Food (estimated)

$1,500.00

Line of Credit

$400.00

Credit Cards

$500.00

Total Average Month Expenses

$6,344.25

Income less Expenses

$-2,517.25

10The main asset of the family is the home for which a refund of taxes is sought. There was evidence of a cash emergency fund which the son discovered upon going through his father’s affairs, however that is an asset to be accounted for in the year 2020, not 2019.

11There are monthly expenses of $2,517 in excess of expenses. R.K. testified that this deficit was being funded by the liquidation of RRSPs.

12R.K. testified that his father was a very private man and the family was not aware of the financial difficulties until his death and an examination his accounts. It is clear that the father was liquidating whatever was realisable in order to fund the monthly deficit of income. He was taking steps to pay his obligation from available assets. The commencement of treatment for his illness in 2019 no doubt impaired his ability to do much more. Notwithstanding these efforts, the credit card and line of credit debt increased by $8,251 over the course of 2019.

13R.K. attempted to earn some income in 2019 while at the same time taking care of his still ailing parents. The automobile expenses are justified by the long commutes he had to undertake to his employment and the transportation of his parents to medical appointments.

14Throughout 2019 M.H.K paid the property taxes, totalling $5,285.52. The payment of property tax throughout the year is not proof of ability to pay. The section of the Municipal Act contemplates refunding tax paid if there was inability to pay because of sickness. It is clear from the monthly deficit of income after expenses that there was an inability to pay these property taxes in 2019 due to the illnesses.

15The Board finds that the Applicants have been unable to pay their property taxes for the year 2019.

Issue 2- Is the inability to pay the taxes due to sickness

16It has been demonstrated and is uncontested by the City that the inability to pay taxes has been caused by the sickness of both Applicants. I find that the Applicants should be refunded the amount of $5,285.52 as the entire amount paid was unable to be paid in light of the Applicants’ 2019 year end financial situation despite the efforts expended to meet their obligations.

CONCLUSION

17The Applicants have established that they were unable to pay their 2019 taxes on account of sickness.

ORDER

18The City of Mississauga shall refund to the Applicants 2019 property taxes paid, in the amount of $5,285.52.