Tribunals Ontario
Tribunaux décisionnels Ontario
Assessment Review Board
Commission de révision de l’évaluation foncière
ISSUE DATE:
January 28, 2022
FILE NO.:
WR 176042
Assessed Person(s):
Z.G.
Applicant(s):
Z.G.
Respondent(s):
Town of Whitby
Property Location(s):
Address withheld
Municipality(ies):
Town of Whitby
Roll Number(s):
Roll number withheld
Appeal Number(s):
3450868
Taxation Year(s):
2020
Hearing Event No.:
758172
Legislative Authority:
Section 357(1) (d.1) of the Municipal Act, S.O. 2001, c. 25
APPEARANCES:
Parties
Representative
Z.G.
Self-represented
Town of Whitby
John Hart and Janet Battersby
HEARD:
January 12, 2022 by telephone conference call
ADJUDICATOR(S):
Margarita Okhovati, Member
DECISION
OVERVIEW
1Z.G. (“the Applicant”) filed an application to the Town of Whitby (the “Town”) to have her 2020 property taxes cancelled, reduced or refunded because she was unable to pay, due either to sickness or extreme poverty, under s. 357(1)(d.1) of the Municipal Act, S.O. 2001 c. 25 ( the “Act”).
2The Town 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 2020 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 2020 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 2020 to be cancelled, reduced or refunded.
Result
5The Board finds that the Applicant failed to demonstrate that she was unable to pay the property taxes levied in 2020. The application is dismissed.
Background
6The Applicant testified that she is the only occupant of a detached 2-story house with three bedrooms, two bathrooms and a finished basement. She stated that she has a son who lives outside the subject property. The subject property was built in 2006 and was transferred under the Applicant’s name by her husband on March 31, 2014 after she separated from him.
ANALYSIS
Issue 1 – Was the Applicant able to pay the property taxes levied in 2020?
7The Applicant submitted several documents in support of her application. Based on the submitted documents, the monthly income of the Applicant is $1,678.11 and expenses are $1,557.81.
8The balance on the Applicant’s bank account as of December 31, 2020 totalled $2,445.84. The Board notes that there is a -$1,140 in the Applicant’s credit card account for the period of November 22 to December 21. The Applicant did not provide the Board credit card statement from December 21 until the end of December 2020 and January of 2021. When asked the Applicant whether she paid the balance in her credit card by the end of December or carried it over to the following year, she first said that she paid in December 2020 and later she stated that she paid in January. The Board disregards this amount in the absence of evidence as to when this balance was paid.
9Monthly expenses of the Applicant are summarized as follows:
Mortgage: $0
Utilities: $224.44
Groceries, household supplies and clothing: $450
Car insurance: $124
House insurance: $70.57
Car gas and maintenance: $200
Cell phone and internet: $69
Property taxes: $419.80
Income Total $1,678.11
Expenses Total $1,557.81
Net Total + $120.30
10The Municipal Property Assessment Corporation’s (“MPAC”) estimated value of the subject property for the 2020 taxation year is $492,000. The Town of Whitby did not provide the Board with the value of the similar properties sold in the vicinity of the subject property in 2020. Therefore, the Board will take the MPAC’s valuation as the value of the subject property.
Assets
Subject Property $492,000
Balance in the TD Bank $2,445.84
2012 Toyota $4,000
Assets Total $498,445.84
Liabilities $0
Net Worth Total $498,445.84
11The Applicant did not testify to any other financial liabilities or assets.
12The Applicant was questioned by counsel for the Town whether she considered of renting out a part of her house to generate an additional income. The Applicant stated that it never occurred to her to do so because she did not want strangers to use her bathrooms or the kitchen.
13The Applicant was asked also whether she considered to obtain reverse mortgage on the property for which the Applicant stated that she was unaware of that.
14The Town’s position is to dismiss the application for the following reasons:
Counsel for the Town submitted that the subject property is mortgage free and there is considerable amount of equity in the subject property.
The monthly expenses of the Applicant also include property tax payments and that the property tax account was paid in full. It was noted as well that the Town credited $400 as an adjustment to the Applicant’s annual tax account.
The Applicant was able to pay her property taxes without cutting from the necessities of life and that she is not in a negative situation when it comes to poverty.
Findings on Ability to Pay
15The monthly income of the Applicant as reported is approximately $120.30 more than her expenses. Although this is not a big amount however, it shows that the Applicant was able to pay the 2020 property taxes after the total monthly expenses incurred by her.
Findings on Issue 1
16The Board finds that the testimony and documentary evidence of the Applicant shows that she was able to pay her property taxes in 2020.
17Having decided that the Applicant was able to pay the property taxes in 2020, 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
Website: www.tribunalsontario.ca/arb