Tribunals Ontario

Tribunaux décisionnels Ontario

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE: October 13, 2022

FILE NO.: WR 181795

Assessed Person(s): M.C.; K.E.B.

Applicant(s): M.C.; K.E.B.

Respondent(s): Township of West Lincoln

Property Location(s): Address Withheld

Municipality(ies): Township of West Lincoln

Roll Number(s): Roll Number Withheld

Appeal Number(s): 3491755

Taxation Year(s): 2021

Hearing Event No.: 773968

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

APPEARANCES:

Parties	Representative
M.C.	Self-represented
Township of West Lincoln	No one appeared

HEARD: October 5, 2022 by telephone conference call

ADJUDICATOR(S): Margarita Okhovati, Member

DECISION

OVERVIEW

1M.C. and K.E.B. (“the Applicants”) filed an application to the Township of West Lincoln (“the Township”) 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 Township 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:

1. if the Applicants were unable to pay their 2021 property taxes; and
2. 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 $5,055.78. The Applicants paid $2,527.90 of the 2021 taxes and the remaining balance is $2,527.88.

Result

6Based on the evidence before it, the Board finds that the Applicants were unable to pay the balance of their 2021 property taxes. Accordingly, the balance of their 2021 taxes of $2,527.88 are cancelled.

ANALYSIS

Issue 1 – Were the Applicants able to pay the property taxes levied in 2021?

7M.C. (“the Applicant”) testified that he is a 64-year-old man, who was retired as a truck driver in 2016 after he was diagnosed with leukemia. Later, as a result of chemotherapy drugs, he developed heart disease. In 2016, when he was very ill, his house caught fire as well. His wife, who never worked has been suffering with different illnesses as well, specifically lumber spine as a result of a fall. The Applicant produced written documents in support of his oral testimony. The Applicant stated that they have two children who are university students. They live outside the subject property and support themselves by working and receiving assistance from Ontario Student Assistance Program (“OSAP”). The Applicant testified that they do not receive financial help from their children and are relying on his Ontario Disability Support Program (“ODSP”) payment and the generosity of the food bank. He stated further that his wife had no income in 2021; she has applied for ODSP as well however, the application is still in process.

8The Applicants’ household income and expenses are managed through two checking accounts and one credit card account. The average monthly income of $1,964.92 was derived from the Applicant’s ODSP payments.

9The balance on the bank accounts as of December 31,2021 was -$5,037.43.

10Monthly expenses reported by the Applicants for 2021 totaled approximately $2,718.11. These expenses are summarized as follows:

• Mortgage: $1,018.73
• Hydro: $50.00
• Gas: $200.00
• Home insurance: $180.00
• Car insurance: $142.72
• Car fuel: $100.00
• Car repair: $100.00
• Cell telephone: $10.00
• Medication and health related expenses: $50.00
• Food: $400.00
• Credit card: $56.00
• Clothing: $200.00
• Property taxes: $210.66

Expenses Total: $2,718.11 Net Total: $ -753.19

11The Municipal Property Assessment Corporation’s (“MPAC”) estimated value of the subject property for the 2021 taxation year is $436,000. The Township 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: $436,000.00 Balance in the Scotia Bank: $3.06 2 cars: $2,300.00 Assets Total: $438,303.06

Liabilities Mortgage: $199,791.20 Checking Account: $5,040.49 Credit card: $54.56 Liabilities Total: $204,886.25

Net Worth Total: $233,416.81

12The Applicant confirmed the above figures and did not testify to any other income or expenses.

13The Applicant was asked as to how he could manage his expenses by monthly average shortfall of $753.19. He stated that he borrowed money by using the equity in the home.

14The Applicant was asked further whether he was aware of the reverse mortgage. He responded that he was not. He was explained the meaning of the reverse mortgage and he agreed to explore it.

15The Applicant was asked why they have two cars with extra monthly expenses. He explained that they live in a rural area where there is no public transportation. He stated that their cars are very old and as a result they need constant repairs. He stated that a mechanic friend repairs them with less money.

Findings on Issue 1- Ability to Pay

16The monthly income of the Applicants as reported is $753.19 less than the total monthly expenses incurred in 2021. By checking the Applicants’ bank statements, the Board finds no unusual expenditures other than expenses for daily needs. It is obvious that the Applicants are trying to minimize their expenses and make ends meet.

17On a net balance basis, the Applicants’ bank accounts show +$3.06 in one account and -$5,040.49 in another as of December 31, 2021. The Applicant testified that they somehow manage their expenses as mentioned, by borrowing and using the food bank.

18Despite the monthly average shortfall demonstrated by the documents and the Applicant’s oral testimony, the Board notes that the home has equity in it, however, as mentioned above, the Applicants have used the equity in the house to borrow money in order to pay a portion of the 2021 taxes and their debt of property taxes for the previous three years. The loan has also helped their monthly expenses.

19Therefore, it is the Board’s finding that the Applicants’ condition puts them in an extreme poverty category and leads to their inability to pay their 2021 taxes in full.

20Having decided that the Applicants were unable to pay their 2021 taxes in full, the Board therefore, cancels the Applicants’ 2021 outstanding taxes of $2,527.88.

ORDER

21The Board orders that the balance of $2,527.88 of the 2021 taxation year to be canceled.