Tribunals Ontario
Assessment Review Board
ISSUE DATE: November 28, 2022 FILE NO.: WR 182344
Assessed Person(s): G.G. Applicant(s): G.G. Respondent(s): City of Toronto Property Location(s): Address Withheld Municipality(ies): City of Toronto Roll Number(s): Roll Number Withheld Appeal Number(s): 3485701 Taxation Year(s): 2021 Hearing Event No.: 777380
Legislative Authority: Section 323(1)(e) of the City of Toronto Act, 2006, S.O. 2006, c. 11, Sched. A
APPEARANCES:
| Parties | Representative |
|---|---|
| G.G. | Self-represented |
| City of Toronto | Graham Thomson |
HEARD: November 10, 2022, by telephone conference call
ADJUDICATOR(S): Margarita Okhovati, Member
DECISION
OVERVIEW
1G.G. (the “Applicant”) filed an application with the City of Toronto (the “City”) to have her 2021 property taxes cancelled, reduced or refunded because she was unable to pay, due either to sickness or extreme poverty, under Section 323(1)(e) of the City of Toronto Act, 2006, S.O. 2006, c. 11, Sched. A.
2The City has passed a by-law delegating its authority to determine such applications to the Assessment Review Board (the “Board”).
Issues for the Hearing
3The main issue before the Board is whether the Applicant’s 2021 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 2021 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.
4Finally, 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 2021 to be cancelled, reduced or refunded.
5In this case, the property taxes levied on the Applicant’s home for the 2021 taxation year was $5,285.27. The taxes were paid in full, therefore, the remedy requested in this application is for a refund of the taxes paid.
Result
6Based on the evidence before it, the Board finds that the Applicant was able to pay her 2021 taxes. Therefore, the Board dismisses this application.
ANALYSIS
Issue 1 – Was the Applicant unable to pay the property taxes levied in 2021?
7The Applicant testified that in 2020, she stopped working because of ongoing medical concerns. She stated that in 2021, she was the only occupant of the subject property, which is a two-story semi-detached house with three-bedrooms and two bathrooms.
8The Applicant submitted copies of three bank account statements. In 2021, the Applicant’s income, based on the oral and documentary evidence, came from Employment Insurance, Canada Recovery Program (“CRB”), Registered Retirement Savings Plan (“RRSP”), $15,177.00 financial help from family members and approximately $1,448.30 from cancelled and refunded trips. It should be noted that there are other deposits in the Applicant’s bank accounts for which the Applicant explained that some deposits were transferred from her line of credit but she did not remember where other sums came from. The Applicant’s 2021 income totaled $45,221.17 or $3,768.43 per month.
9The Applicant stated that $15,177.00 should be treated as a loan she received from her family. She was asked whether she had an agreement with her family members for it and whether she has paid back a part of it in 2021 she stated that she does not have an agreement for it and that she has not paid a part of it even up to date.
10The City noted that the monthly expenses of the Applicant include full monthly property tax payments of $440.42 and mortgage payments of $2,367.00.
11Monthly expenses of the Applicant are summarized as follows:
EXPENSES
| Mortgage: | $2,367.00 |
| Property tax: | $440.42 |
| Home insurance: | $179.53 |
| Water: | $180.11 |
| Heat: | $164.62 |
| Hydro: | $73.58 |
| Internet/ cable: | $79.71 |
| Cell phones: | $30.00 |
| New cell phone and laptop: | $186.39 |
| Food: | $473.28 |
| House supplies: | $94.14 |
| Transit | $40.70 |
| Interest on credit card and line of credit: | $188.80 |
| Line of credit card payment: | $154.17 |
| Car rental and gas: | $10.08 |
| Clothing: | $38.77 |
| New alarm system: | $41.81 |
| Banking fee: | $31.87 |
| Other expenses: | $16.67 |
| Expenses Total: | $4,791.65 |
NET TOTAL
| Income Total | $4,287.62 |
| Expenses Total | $4,791.65 |
| Net Total | -$504.03 |
12The Municipal Property Assessment Corporation’s (“MPAC”) estimated value of the subject property for the 2021 taxation year is $865,000.00. The City submitted that in 2021, the average price of similar properties sold in the vicinity of the subject property was between $1,300,000 to $1,400,000. The Applicant stated that she was aware of this fact however, her property was not renovated. She agreed that her property’s value was $1,300,000.
13The following tables detail the Applicant’s assets and liabilities in 2021.
ASSETS
| Subject property: | $1,300,000.00 |
| Registered Retirement Savings Plan: (“RRSP”) | $60,506.87 |
| Chequing account: | $77.44 |
| Assets Total: | $1,360,584.31 |
LIABILITIES
| Mortgage owing | $309,215.11 |
| Line of Credit: | $76,019.83 |
| Home Buyers Plan: | $1,598.00 |
| Credit card balance: | $1,401.52 |
| Liabilities Total: | $388,234.46 |
14Subtracting the Applicant’s total liabilities of $388,234.46 from her total assets of $1,360,584.31 results in a total net worth of $972,349.85 for the 2021 taxation year.
15The City’s position is to dismiss the application because in 2021, the Applicant could access approximately $18,000 credit available to her in her credit card and line of credit, despite having paid off more than $24,000 debt in those accounts, as well as the monthly mortgage and 2021 property taxes in full. The City submitted further that the Applicant could access the equity in the home to assist her financially, and she had family members’ financial assistance and support whenever she needed. Moreover, the City submitted that the Applicant did not use her discretion in spending money on transportation, recreation, gifts, supplying food from outside, etc.
Findings on Issue 1- Ability to Pay
16The Board notes that the monthly income as reported, is approximately $504.03 less than the monthly expenses incurred by the Applicant in 2021. This figure is after paying her monthly mortgage and property taxes in full and paying approximately $24,000 of her credit card and line of credit debts. The Board notes that based on the documentary evidence, the Applicant had $60,506.87 in her RRSP account, approximately $990,785 equity in her home and $28,000 credit available to her in her credit card and line of credit accounts. The Applicant could have accessed and used these amounts to add to her monthly income. Moreover, as the City stated, the Applicant had the financial support of her family when she needed it. In the opinion of the Board, not only did the Applicant not cut from the necessities of life, but she was able to maintain her life as she wanted, by spending money on gifts, transportation (taxi and Uber), purchasing new household items, food from outside, etc. This indicates to the Board that the Applicant is not in a negative situation when it comes to poverty.
17The Board finds that the Applicant was able to pay her 2021 property taxes, as she did.
18Having decided that the Applicant was able to pay the property taxes in 2021, the Board has no reason to consider whether the Applicant is in a condition of sickness or extreme poverty.
ORDER
19The Board orders that the application for reduction, cancellation or refund of the 2021 property taxes is dismissed.
"Margarita Okhovati"
MARGARITA OKHOVATI MEMBER Assessment Review Board
Website: www.tribunalsontario.ca/arb