V.C. v. City of Mississauga, 2022 CanLII 88419

Tribunals Ontario

Assessment Review Board

ISSUE DATE: September 20, 2022

FILE NO.: WR 181492

Assessed Person(s): V.C.

Applicant(s): V.C.

Respondent(s): City of Mississauga

Property Location(s): Address Withheld

Municipality(ies): City of Mississauga

Roll Number(s): Roll Number Withheld

Appeal Number(s): 3482655

Taxation Year(s): 2021

Hearing Event No.: 773565

Legislative Authority: Section 357(1) (d.1) of the Municipal Act, S.O. 2001, c. 25, as amended

APPEARANCES:

Parties	Representative
V.C.	Self-represented
City of Mississauga	Sean Doyle

HEARD: September 14, 2022 by telephone conference call

ADJUDICATOR(S): Margarita Okhovati, Member

DECISION

OVERVIEW

1V.C. (“the Applicant”) filed an application to the City of Mississauga (“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 $4,985.76. The Applicant did not pay the 2021 taxes.

Result

6Based on the evidence before it, the Board finds that the Applicant was unable to pay her 2021 property taxes. Accordingly, the property taxes levied in 2021 are reduced by $2,493.

ANALYSIS

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

7The Applicant is an 87-year old woman who is retired after working for fifty years in Mississauga nursing homes. She stopped working because she developed brain tumor in 1991. She testified that in 1979, her husband passed away. In 2021, she lived with her 62-year old son who stopped working in order to take care of his mother. She stated that she is relying on her pension and has no other income. She stated she could not make the ends meet if her other son who is married and lives outside the house did not help her financially.

8The Applicant’s household income and expenses are managed through three checking accounts and one credit card account. An average monthly income of $2,405.61 was derived from the Applicant’s Canadian Pension Plan (“CPP”) and Old Age Security and her son’s ODSP payments.

9The balance on the bank accounts as of December 31, 2021 is $6.00.

10Monthly expenses reported by the Applicant for 2021 totaled approximately $2,800.41. These expenses are summarized as follows:

• Mortgage: $1,292.88
• Hydro: $ 115.00
• Water: $ 75.00
• Gas: $ 100.00
• Telephone/cable /internet: $ 170.00
• Home insurance: $ 180.00
• Medication: $ 20.00
• Food: $ 650.00
• Credit card: $ 175.00
• Water heater rental $ 22.53

Expenses Total: $2,800.41 Net Total $ 394.00-

11The Municipal Property Assessment Corporation’s (“MPAC”) estimated value of the subject property for the 2021 taxation year is $604,000. 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: $ 604,000.00 Balance in the bank accounts: $ 6.00 Assets Total $ 604,006.00

Liabilities Mortgage: $ 263,000.00 Credit card: $ 4,076.29 Liabilities Total: $ 267,076.29

Net Worth Total $ 336,929.71

12The Applicant confirmed the above figures and did not testify to any other financial liabilities or assets.

13The Applicant was asked whether she was aware of the reverse mortgage. She responded that she was not. She was explained the meaning of the reverse mortgage and she agreed that she would explore it.

14The City offered no submission or recommendation.

Findings on Issue 1- Ability to Pay

15The monthly income of the Applicant as reported is $394.00 is less than the total monthly expenses incurred in 2021.

16On a net balance basis, the Applicant’s bank accounts show $6.00 as of December 31, 2021. This demonstrates her ability to manage her expenses with the help of her son.

17Despite the monthly average shortfall demonstrated by the documents and the Applicant’s oral testimony, the Board notes that the home has equity on it. However, the Board also notes that the Applicant applied and received a second mortgage on the house by using the existing equity.

18Therefore, it is the Board’s finding that the Applicant’s condition puts her in an extreme poverty category and leads to her inability to pay her 2021 taxes.

19Having decided that the Applicant was unable to pay her 2021 taxes, the Board therefore, reduces her 2021 taxes from $4,985.76 to $2,493.00.

ORDER

20The Board orders that the property taxes levied at the subject property be reduced by $2,493.00 for 2021 taxation year.