Tribunals Ontario
Tribunaux décisionnels Ontario
Assessment Review Board
Commission de révision de l’évaluation foncière
ISSUE DATE:
July 26, 2022
FILE NO.:
WR 180442
Assessed Person(s):
K.A. and A.A.
Applicant(s):
K.A. and A.A.
Respondent(s):
City of Mississauga
Property Location(s):
Address Withheld
Municipality(ies):
City of Mississauga
Roll Number(s):
Roll Number Withheld
Appeal Number(s):
3483959
Taxation Year(s):
2021
Hearing Event No.:
765566
Legislative Authority:
Section 357(1) (d.1) of the Municipal Act, S.O. 200`, c. 25, as amended
APPEARANCES:
Parties
Counsel/Representative*
K.A. and A.A.
Self-represented
City of Mississauga
Sean Doyle
HEARD:
July 14, 2022 by telephone conference call
ADJUDICATOR(S):
Margarita Okhovati, Member
DECISION
OVERVIEW
1K.A. and A.A. (“the Applicants”) filed an application to the City of Mississauga (“City”) to have their 2021 property taxes cancelled, reduced 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, S.O. 2001 c. 25 (the “Act”).
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 Applicants’ 2021 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:
if the Applicants were unable to pay their 2021 property taxes; and
if the Board determines they were unable to pay their property taxes, the Board must then determine if the reason they were unable to pay was either sickness or extreme poverty.
4Finally, if the Board determines that they were 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 Applicants’ home for the 2021 taxation year was $4,288.36. As of December 31, 2021, the Applicants’ total outstanding property taxes were $44,519.39. The Applicants cleared this amount in April 2022 by taking a second mortgage. The Applicants requested a refund of $4,288.36 for the 2021 taxes by filing this application.
Result
6Based on the evidence before it, the Board finds that the Applicants were able to pay their 2021 taxes. Therefore, the Board dismisses this application.
ANALYSIS
Issue 1 – Were the Applicants able to pay the property taxes levied in 2021?
7Applicant A.A. (“the Applicant”) testified on behalf of the family. She stated that in 2021, she lived with her parents, her brother, who is the co-owner of the subject property and her younger sister in a semi-detached house with three-bedrooms and two and a half bathrooms with finished basement. She testified that in 2021, none of the family members worked. Her parents were on old age security payments, she and her brother were on Ontario works and the younger sister was on Ontario Disability Support Program (“ODSP”). The Applicant testified that her parents are old and unhealthy and that she and her brother are their care givers.
8The Applicants submitted a copy of six checking accounts and four credit card accounts. The Applicant stated that in 2021, in addition of the family’s income from the Federal and the Provincial Governments ($61,118), a cousin who lives in Canada assisted them financially every month and another cousin sent money to the family from overseas. Relative assistance in 2021 totaled $20,604.76. Therefore, the family’s income in 2021 was $81,722.76 or $6,810.23 per month.
9Monthly expenses of the Applicants in 2021 are summarized as follows:
Mortgage: $1,586.88
Internet and cable: $62
Car and home insurance: $282
Hydro: $222
Gas: $200
Water: $100
Cell telephones: $175.15
Medication: $250
Food $1,500
Car expenses and gas $360
Line of credit: $170
Entertainment $39
Other expenses: $100
Income Total: $6,810.23
Expenses Total: $5,047.03
Net Total $1,763.20
10The Municipal Property Assessment Corporation’s (“MPAC”) estimated value of the subject property for the 2021 taxation year is $534,000. The City did not provide the Board with the value of the similar properties sold in the vicinity of the subject property in 2021. Therefore, the Board will take the MPAC’s valuation as the value of the subject property.
Assets
Subject Property: $534,000
Balance in the bank accounts: $4,793.14
2017 Honda: $15,000
Assets Total $553,793.14
Liabilities
Mortgage: $269,142
Line of credit: $61,813.68
Credit cards: $8,157.93
Balance of property taxes: $44,519.39
Rogers communication: $2,006
Collection Agency: $1,237
Enercare rental equipment: $11,753
CRA debt: $9,810
Liabilities Total: $408,439
Net Worth Total $145,354.14
11The Board notes that the Applicants’ evidence in the Financial Statement Form with respect to both income and expenses is very different from the documentary evidence. The Board relies on the documentary evidence and the bank records, which provide the best and precise evidence.
12The City noted several discretionary expenditures by the Applicants specially, purchasing meals from outside which was very high. The City referred particularly to 11 purchases in one day in August 2021.
13The City offered no submission or recommendation.
Findings on Issue 1- Ability to Pay
14The Board notes that the Applicants’ outstanding taxes for 2021 was $4,288.36 or $357.363 per month and their monthly net total was $1,763.20. Even if, we do not consider the other funds available to them ($4,793.14 in the bank accounts as of December 31, 2021) and the equity on their property, it is clear evidence that they could have used this money to pay their 2021 taxes.
15Furthermore, as mentioned above, the Applicants spent a lot of money to purchase food from outside in addition of their monthly expenses for groceries. They also purchased numerous items online for the family’s entertainment, etc. In the Board’s view, discretionary spending on non-essential matters, as mentioned above, indicates that the Applicants had an ability to pay their monthly property taxes. The Board determined, in M. M. U. v Toronto (City), 2015 CanLII 46826 (ON ARB), that discretionary expenses must not take precedence over the payment of property taxes.
16Therefore, it is the Board’s finding that the Applicants were able to pay their 2021 property taxes without cutting from the necessities of life and that they are not in a negative situation when it comes to poverty.
17Having decided that the Applicants were able to pay the property taxes in 2021, the Board has no reason to consider whether the Applicants are 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