M.I. and J.J.K. (Estate) v. City of London, 2021 CanLII 88707

Tribunals Ontario

Tribunaux décisionnels Ontario

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE:

September 15, 2021

FILE NO.:

WR 173546

Assessed Person(s):

M.I. and J.J.K. (Estate)

Applicant(s):

M.I.; J.J.K. (Estate)

Respondent(s):

City of London

Property Location(s):

Address Withheld

Municipality(ies):

City of London

Roll Number(s):

Roll Number Withheld

Appeal Number(s):

3416944

Taxation Year(s):

2020

Hearing Event No.:

751164

Legislative Authority:

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

APPEARANCES:

Parties

Representative

M.I., and J.J.K. (Estate)

Self-represented

City of London

James Edmunds

HEARD:

August 20, 2021 by telephone conference call

ADJUDICATOR(S):

Dan Weagant, Member

DECISION

OVERVIEW

1M.I. (the “Applicant”) filed an application with the City of London (“City”) to have her 2020 property taxes cancelled, reduced or refunded because she was unable to pay, due to either sickness or extreme poverty, under s. 357(1)(d1) 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”) 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 her inability to pay, due to sickness or extreme poverty. This requires the Board to determine:

1. if the Applicant was unable to pay her 2020 property taxes;

2. 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; and

3. if the Board determines she 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 able to pay the property taxes levied in 2020. The application is dismissed.

ANALYSIS

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

5M.I. testified that she had income in the amount of approximately $3,361 per month in 2020. This total was comprised of employment income, a Canadian Forces Survivor Pension and a Canada Pension Plan survivor’s benefit.

6The household income and expenses are managed through a single bank account held by the Applicant. The balance on that account was approximately $71 on January 1, 2020 and $1,153 on December 31, 2020.

7Monthly expenses incurred by the household in 2020 averaged $2,533. These expenses are summarized as follows (all rounded to the nearest dollar):

• Mortgage payments: $ 966

• Utilities: $130

• Groceries and general household expenses: $650

• Medication and health care expenses not covered by health insurance: $69

• Car and home insurance: $279

• Supplementary health insurance premiums: $179

• Cell phone, home phone, TV and internet: $156

• Car operating expenses and maintenance: $82

• Bank fees: $22

8The City submitted that in its deliberations, the Board should consider the value of the subject property. According to the City, similar houses in the same neighbourhood as the subject property sold in the $600,000 range in 2020. When the mortgage balance is considered, the City submitted that the equity in the subject property exceeds $345,000.

9The City noted that no payments were made on the 2020 property tax account, and that the property taxes levied in 2020 totaled $3,613.33.

Findings on Issue 1

10The Board must determine if the Applicant was able to pay her property taxes, based on the evidence available at the hearing. The evidence shows that the expenses attributed to basic household needs were $828 less than the income, on a monthly average basis.

11If, after meeting the necessities of life and care, applicants are not able to pay some or all of their taxes, the Board has frequently held that all or some of the property taxes should be reduced, refunded or cancelled in the year for which the application is made.

12In this case, the Applicant’s necessary household expenses, as testified to, were less than the total household income during 2020. This average, monthly difference in income vs. expenses supports the finding that there was 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.

13The Board finds therefore that the Applicant was able 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?

14As the Board has determined that the Applicants were able to pay the property taxes levied in 2020, there is no reason to decide why they were unable to pay.

ORDER

15The Board orders that the application is dismissed.