A.L. v. City of Hamilton, 2022 CanLII 80271

Tribunals Ontario

Tribunaux décisionnels Ontario

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE: August 29, 2022

FILE NO.: WR 181146

Assessed Person(s): A.L.

Applicant(s): A.L.

Respondent(s): City of Hamilton

Property Location(s): Address Withheld

Municipality(ies): City of Hamilton

Roll Number(s): Roll Number Withheld

Appeal Number(s): 3491959

Taxation Year(s): 2021

Hearing Event No.: 774178

Legislative Authority: Section 357(1) (d.1) of the Municipal Act, S.O. 200`, c. 25, as amended

APPEARANCES:

Parties	Representative
A.L.	Self-represented
City of Hamilton	Linda Nimako

HEARD: August 22, 2022 by telephone conference call

ADJUDICATOR(S): Margarita Okhovati, Member

DECISION

OVERVIEW

1A.L. (“the Applicant”) filed an application to the City of Hamilton (“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 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 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:

1. if the Applicant was unable to pay her 2021 property taxes; and
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.

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 $2,683.01. In 2021, the Applicant paid the City $879.56 for a portion of 2021 and previous years’ taxes. Therefore, the balance of her property taxes for 2021 is $2,123.34.

Result

6Based on the evidence before it, the Board finds that the Applicant failed to demonstrate that she was unable to pay the property taxes levied in 2021. The application is dismissed.

ANALYSIS

Issue 1 – Was the Applicant able to pay the property taxes levied in 2021?

7The Applicant testified that in 2021, as a single mother, she lived with her 20-year old son in the subject property, which is a two-storey detached house with two bedrooms and two bathrooms. She stated that in 2021 she did not work because she was sick, although no documentation was filed to support that submission. In 2021, the Applicant’s only income was from the Ontario Disability Support Program (“ODSP”). Her son’s college expenses are supported by Ontario Student Assistance Program (“OSAP”).

8The Applicant did not provide all the necessary documents for the full hearing. She did not submit any document with respect to her son. On the recommendation of the City, the Board proceeded with the hearing based on the information submitted by the Applicant and her oral testimony.

9The Applicant testified that in 2021, she received an average monthly income of $2,149.06. This income was derived from ODSP payment and income tax refunds.

10The balance on the Applicant’s bank account as of December 2021 was $1,800.45.

11Monthly expenses reported by the Applicant for 2021 totaled approximately to $1,993.81. These expenses are summarized as follows:

• Mortgage: $839.00
• Fuel: $71.00
• Hydro/water: $32.66
• Telephone: $104.16
• Home insurance: $77.27
• Car insurance: $103.13
• Gas: $100.00
• Medication: $30.00
• Food: $400.00
• Internet/cable $106.46
• Water heater: $56.83
• Property tax payment: $73.30

Expenses Total: $1,993.81

Net Total $155.25

13The Municipal Property Assessment Corporation’s (“MPAC”) estimated value of the subject property for the 2021 taxation year is $222,000. 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: $222,000 Balance in the bank accounts: $1,800.45 Assets Total $223,800.45

Liabilities Mortgage: $86,705.66 Line of credit: $272.84 Credit cards: $293.72 Liabilities Total: $87,272.22

Net Worth Total $136,528.23

14The Applicant confirmed the above figures and did not testify to any other financial liabilities or assets.

15The City noted that the Applicant has secured her mortgage and is able to pay her monthly premiums. The City asked the Applicant that since there is equity in the home, whether she has asked the mortgage company to add her monthly property taxes to her mortgage payments. In response, the Applicant stated that in 2021 she did not do so but has asked her mortgage company to consider it in 2022.

16The City brought to the attention of the Applicant regarding the City’s deferred program regarding the property taxes as well and asked her whether she was aware of the program. In response, the Applicant stated that she was unaware of it but will try to explore the opportunity.

Findings on Issue 1- Ability to Pay

17As stated above, the Applicant’s monthly income is $155.25 more than her expenses. She made four property tax payments of $220 (total$ 879.56) in 2021. Although $155.25 is not a high figure for monthly surplus income however, the documentary evidence showed a balance of $1,800.45 in the Applicants checking account at the end of 2021 after paying all her expenses. It is the Board’s finding that the Applicant could have used this amount to pay her 2021 taxes in full.

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 is dismissed.