Assessment Review Board
Tribunals Ontario Tribunaux décisionnels Ontario Assessment Review Board Commission de révision de l’évaluation foncière
ISSUE DATE: February 09, 2022 FILE NO.: WR 176242 Assessed Person(s): B.L.M. Applicant(s): B.L.M. Respondent(s): City of Hamilton Property Location(s): Address withheld Municipality(ies): City of Hamilton Roll Number(s): Roll number withheld Appeal Number(s): 3451060 Taxation Year(s): 2020 Hearing Event No.: 760764 Legislative Authority: Section 357(1) (d.1) of the Municipal Act, S.O. 2001, c. 25
APPEARANCES:
| Parties | Representative |
|---|---|
| B.L.M. | Self-represented |
| City of Hamilton | Linda Nimako |
HEARD: January 26, 2022 by telephone conference call
ADJUDICATOR(S): Margarita Okhovati, Member
DECISION
OVERVIEW
1B.L.M. (“the Applicant”) filed an application to the City of Hamilton (the City”) to have her 2020 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”).
3The Subject Property is a single-family detached house built in 1914. It has five bedrooms and two full bathrooms. The property taxes levied on the Subject Property in the 2020 taxation year was $4,048. According to the City’s latest report, the balance of the Applicant’s property taxes for 2020 is $3,638.04.
Issues for the Hearing
4The main issue before the Board is whether the Applicant’s 2020 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:
if the Applicant was unable to pay her 2020 property taxes; and
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.
5Finally, 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 2020 to be cancelled, reduced or refunded.
Result
6The Board finds that the Applicant was unable to pay her 2020 property taxes in full due to sickness. Accordingly, the 2020 property taxes are reduced by $2,197.07.
Background
7The Applicant testified that she and her three sons were born with different disabilities. She stated that in 2020 one of her sons lived with her in the subject property for the whole year and the other son lived there with her grandson for 8 months. The Applicant provided the Board with a hand-written contract she made with her sons to receive $950 per month for boarding. She stated further that her sons paid for their own food and expenses and she incurred all the other expenses regarding the upkeeping of the house.
ANALYSIS
Issue 1 – Was the Applicant able to pay the property taxes levied in 2020?
8The Applicant submitted incomplete credit card statement despite the fact that firstly, she was familiar with the Board’s hearing process and the required documents for the full hearing because she appeals her property taxes every year. Secondly, with regards to the required documents, she was explained clearly in the pre-hearing conference dated July 26, 2021 and later in the Procedural Order dated July 28, 2021. In her credit card statement, it shows the period from January until November 12, 2020. The statements of the rest of November and December 2020 and January of 2021 are missing. In her checking account, statement for January 2021 is missing. The Applicant was questioned in this regard, she apologized for not submitting the statements for the required months.
9The average monthly income and expenses of the Applicant are summarized as follows:
Income
Ontario Disability Support Program (“ODSP”) $1,471.61
Rent from son No.1 $500
Rent from son No. 2 $300
(8 months at $450/month)
Income Total: $2,271.61
Expenses:
Mortgage: $451.72
Property tax: $183.33
Utilities: $235.31
Groceries: $300
Car insurance: $287.97
Car gas and other expenses: $310
Parking for medical appointments: $110
House insurance: $75.42
House/cell phones: $104.90
Cable/internet: $183.91
Netflix and entertainment: $3.50
Over the counter medicine: $60
Medical file transfer: $30.03
Monthly interest charge: $42.60
Expenses Total: $2,378.69
Net Total $ -107.08
10The Municipal Property Assessment Corporation’s (“MPAC”) current value of the subject property for the 2020 taxation year is $373,000. The City did not provide the Board with the value of the similar properties sold in the vicinity of the subject property in 2020. Therefore, the Board takes the MPAC’s valuation as the value of the subject property in 2020.
Assets
Subject Property $373,000
2013 Hyundai Accent $ 6,000
Cash in bank $ 1,440.97
Assets Total $380,440.97
Liabilities
Mortgage $98,000
Net Worth Total $282,440.97
11The Applicant did not testify to any other financial liabilities or assets.
12The Applicant was questioned by the City representative whether she considered obtaining a reverse mortgage on the property. The Applicant stated that she was unaware of that option. As well, the representative brought to the attention of the Applicant that the City has a property tax deferral program for poor and disabled and that the Applicants have only to pay for the application fee and a 3% interest on the deferral amount annually until they sell the property. The Applicant stated that she was aware of the program however, she was not interested because the program has only a 3-year window. The representative stated further that the Applicant is referring to the old program and that the new program has no limit as to how long one can take advantage of it before selling the property.
13The City in its submissions did not take a position as it has delegated its authority to the Board. The City noted that some payments were made on the 2020 property tax account by the Applicant. As mentioned above, the property taxes levied in 2020 totaled $4,058.04 and the remaining balance is $3,638.04.
Findings on Issue 1
14The Board must determine if the Applicant was able to pay her property taxes based on the evidence available at the hearing. The evidence shows that the expenses incurred by the Applicant were in average $107.08 per month less than her income.
15The Board has widely held that property taxes must hold a place of priority with respect to the money spent by a household over the course of a given taxation year. The Board has also held that in order to determine if applicants are able to pay taxes, those payments are to be made once all costs associated with the reasonable necessities of life and care of those residents at the subject property are covered.
16If after meeting the necessities of life and care, applicants are not able to pay some or all of their taxes, the Board has frequently held that all or some of the property taxes should be reduced, refunded or cancelled in the year for which the application is made.
17In this case, the Applicant’s expenses are slightly over her income in 2020. The Board notes that, although the Applicant has contributed some amount towards her 2020 property taxes, her priority was to pay her monthly mortgage and other expenses. After meeting all her expenses, the Applicant had $1,440.97 in her bank account by the end of 2020 taxation year. The Board finds therefore that after the necessary expenses were accounted for, the Applicant was able to pay a portion of the property taxes levied in 2020.
18As mentioned above, there is a balance of $ 3,857.26 in the Applicant’s credit card account. The Board disregards this amount in the absence of evidence as to whether or not this amount was paid in 2020 taxation year.
19Furthermore, the Board finds that the Applicant had the opportunity of finding out regarding her options of reverse mortgage or the City’s property tax deferral program but failed to do so.
Issue 2 – Was the reason of Applicant’s inability to pay her property taxes in 2020 as a result of either her sickness or extreme poverty?
20The City did not contest the evidence that the Applicant is disabled and has sicknesses and is unable to work.
Findings on issue 2
21The Board determines that the Applicant’s inability to pay the 2020 property taxes was due to the Applicant’s sickness.
CONCLUSION
22The Board finds that the Applicant’s inability to pay her property taxes was due to the Applicant’s disability and sickness and that the adult children living with the Applicant in 2020 were tenants and did not contribute towards any other expenses.
ORDER
23The Board orders that the 2020 property taxes of the subject property be reduced by $2,197.07.
"Margarita Okhovati"
MARGARITA OKHOVATI
MEMBER
Assessment Review Board
Website: www.tribunalsontario.ca/arb