Tribunals Ontario
Tribunaux décisionnels Ontario
Assessment Review Board
Commission de révision de l’évaluation foncière
ISSUE DATE:
September 14, 2022
WR 181342
Assessed Person(s):
A.A.N.P.; C.L.P.
Applicant(s):
A.A.N.P.; C.L.P.
Respondent(s):
City of Mississauga
Property Location(s):
Address Withheld
Municipality(ies):
City of Mississauga
Roll Number(s):
Roll Number Withheld
Appeal Number(s):
3485838
Taxation Year(s):
2021
Hearing Event No.:
774964
Legislative Authority:
Section 357(1) (d.1) of the Municipal Act, S.O. 200`, c. 25, as amended
APPEARANCES:
Parties
Counsel*/Representative
A.A.N.P.
Self-represented
City of Mississauga
Sean Doyle
HEARD:
September 8, 2022 by telephone conference call
ADJUDICATOR(S):
Margarita Okhovati, Member
DECISION
OVERVIEW
1A.A.N.P. (“the Applicant”) filed an application to the City of Mississauga (“City”) to have his 2021 property taxes cancelled, reduced or refunded because he 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 his inability to pay because of sickness or extreme poverty. This requires the Board to determine:
if the Applicant was unable to pay his 2021 property taxes; and
if the Board determines he was unable to pay his property taxes, the Board must then determine if the reason he was unable to pay was either sickness or extreme poverty.
4Finally, if the Board determines that he 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.
Result
5Based on the evidence before it, the Board finds that the Applicant failed to demonstrate that he 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?
6On June 8, 2022, a pre-hearing telephone conference was held to provide the Applicant with information about the full hearing and the documents that are required to support the application.
7The Board issued a Procedural Order (DM 180043) on July 12, 2022. This emphasized the information that was discussed at the pre-hearing and confirmed the required documents the Applicant needed to serve the City and file with the Board.
8On the consent of the parties, it was determined that the full hearing telephone conference call would be held on July 27, 2022.
9On July 27, 2022, the hearing of this application was adjourned due to insufficient documents filed by the Applicant. On the recommendation of the City, an adjournment was granted. The Applicant’s reason for not submitting the necessary documents was for not having a computer and being overwhelmed with the amount of the required documents. The City representative offered to help the Applicant in this respect. A new hearing was scheduled for September 8, 2022. On this date, in the absence of several documents again, the Board decided to proceed with the hearing based on the submitted information and the Applicant’s oral testimony.
10The Applicant testified that he is 62-years old. He inherited the subject property from his mother who passed away in 2018. He stated that he was unemployed, never married and is the only occupant in the property. The subject property is a 2-storey detached house with three bedrooms and two and a half bathrooms. The Applicant’s parents purchased the property for $240,000 in 1986. Municipal Property Assessment Corporation’s (“MPAC”) 2021 assessment of the subject property is $659,000. The Applicant was asked whether he explored the opportunity to getting a loan to pay his property taxes and other debts since the property is mortgage free and has equity on it. First, he hesitated to respond and later stated that he called and asked a bank but he was refused. He was asked further whether he explored the opportunity to rent out a room in his three bedroom house to generate additional income, in response he stated that he did not because the house needs to be repaired.
11The Applicant submitted a copy of a checking account and a credit card account. His checking account showed a balance of $1,449.12 as of December 31, 2021. The balance in his credit card was $23,204.71. The Applicant submitted also the receipt of a monthly payment for a storage in the United States for US$138.00 (C$165.00). When asked to explain, he stated that the storage unit contains his mother’s furniture and because of Covid he could not travel to get rid of the storage unit.
12The Applicant’s monthly income is $859.88. This income is derived from Canada Pension Plan and Ontario Works payments. His monthly expenses are $802.40.
13Monthly expenses of the Applicant in 2021 are summarized as follows:
Mortgage: $ 0.00
Heat: 49.15
Hydro: 44.00
Water: 62.50
Telephone: 28.25
Food: 250.00
Public transportation: 116.00
Driver’s license renewal: 7.50
Storage rent: 165.00
Other expenses: 80.00
Income Total: 859.88
Expenses Total: 802.40
Net Total $57.48
14As mentioned above, the Municipal Property Assessment Corporation’s (“MPAC”) estimated value of the subject property for the 2021 taxation year is $659,000. 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: $659,000.00
Balance in the bank accounts: $1,449.12
Assets Total $660,449.12
Liabilities
Mortgage: $0.00
Credit card: $23,204.71
Borrowed from friends: $1,000.00
Liabilities Total: $24,204.71
Net Worth Total $636,244.41
15The Applicant confirmed all the figures and did not testify to any other financial liabilities or assets.
16The City offered no submission or recommendation.
Findings on Issue 1 - Ability to Pay
17The Applicant’s outstanding taxes for 2021 was $5,292.19 or $441.00 per month. The Board notes that although the Applicant’s monthly income is only slightly more than his expenses and that he did not incur unnecessary expenses in 2021 however, the property is mortgage free and he has big equity on the home. Furthermore, after paying all his monthly expenses, he has a balance of $1,449.12 in his checking account.
18Therefore, it is the Board’s finding that the Applicant was able to pay his 2021 property taxes with careful planning and without cutting from the necessities of life.
19Having 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
20The Board orders that the application is dismissed.
"Margarita Okhovati"
MARGARITA OKHOVATI
MEMBER
Assessment Review Board
Website: www.tribunalsontario.ca/arb