M.N.L. v. Town of Oakville, 2023 CanLII 16838

Tribunals Ontario

Tribunaux décisionnels Ontario

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE: February 28, 2023

FILE NO.: WR 183397

Assessed Person(s): M.N.L.

Applicant(s): M.N.L.

Respondent(s): Town of Oakville

Property Location(s): Address Withheld

Municipality(ies): Town of Oakville

Roll Number(s): Roll Number Withheld

Appeal Number(s): 3506722

Taxation Year(s): 2021

Hearing Event No.: 778168

Legislative Authority: Section 357.(8) of the Municipal Act, S.O. 2001, c. 25

APPEARANCES:

Parties

Representative

M.N.L.

Self-represented

Town of Oakville

Leslie-Jane Hisey

HEARD: February 17, 2023, by telephone conference call

ADJUDICATOR(S): Margarita Okhovati, Member

DECISION

OVERVIEW

1M.N.L. (the “Applicant”) filed an application to the Town of Oakville (the “Town”) to have her 2021 property taxes cancelled, reduced or refunded because she was unable to pay, due either to sickness or extreme poverty. The Town failed to make its decision on the application by the timeline legislated in s. 357(8) of the Municipal Act, 2001, S.O. 2001, c. 25 (the “Act”) and subsequently, the Applicant appealed to the Assessment Review Board (“Board”).

2In 2021, the Applicant was a 44-year-old single mother, who lived with her 16-year- old son in the subject property, which is a two-story free-hold town home with three-bedrooms, two and a half bathrooms and a finished basement. She testified that she was divorced in 2015. She paid half of the value of the property to her husband and presently she is the only owner of the subject property. She stated that in 2021 she was sick, although no documentation was filed to support that submission except, a narrative written by her, describing her illnesses, namely Irritable Bowel Syndrome (“IBS”), aches and pains in her joints and cognitive problems.

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 the Applicant’s inability to pay because of sickness or extreme poverty. This requires the Board to determine:

1. if the Applicant was unable to pay the 2021 property taxes,

2. if the reason the Applicant was unable to pay was either sickness or extreme poverty; and finally,

3. if the Applicant was unable to pay because of sickness or extreme poverty, the amount of the property taxes levied in 2021 to be cancelled, reduced, or refunded.

4Based on the Town’s records, the outstanding balance of the Applicant’s property taxes from 2020-2022 taxation years is $20,096.83. The property taxes levied on the Applicant’s home for 2021 taxation year is $5,231.05.

Result

5Based on the evidence before it, the Board finds that the Applicant was able to pay her 2021 taxes. Therefore, the Board dismisses this application.

ANALYSIS

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

6The Applicant submitted a copy of statements of two bank accounts, checking and saving accounts with the Royal Bank of Canada (“RBC”). The most important omission was her credit card statement, although it was mentioned in the pre-hearing conference and later in the Procedural Order regarding the importance of these documents for reaching a decision. The representative of the Town stated in the hearing that she assisted the Applicant regarding the Board’s required documents as well. There is no documentary evidence to show the Applicant’s expenditures. Therefore, in the absence of credit card statement, the Board relied mostly on the Applicant’s oral testimony.

7The balance in the Applicant’s Guaranteed Investment Certificate (“GIC”) account as of December 31, 2021, is $696.68.

8The Applicant’s monthly total income based on the documentary evidence for 2021 is $2,557.00. This total amount is derived mostly from Ontario Disability Support Program (“ODSP”) and child support.

9The Applicant testified to monthly expenses, totaling approximately to $2,326.69. As mentioned above, most of the documents with respect to the following expenses are missing.

10It should be noted that the outstanding balance of the Applicant’s 2021 home gas bill of $1,224.53 and Hydro bill of $725.00, as per her oral testimony, was paid by two charities, Oak Park Neighborhood and Low-income Energy Assistance Program (LEAP).

11Monthly expenses of the Applicant are summarized as follows:

• Mortgage: $1,384.89

• Monthly fee of the town home: $93.00

• Cell phones: $30.51

• Food: $550.00

• Internet: $57.00

• Netflix: $11.29

• Clothing: $50.00

• Gas for car: $150.00

Income Total $2,557.00

Expenses Total $2,326.69

Net Total +$230.31

12The current value of the subject property for the 2021 taxation year, as determined by the Municipal Property Assessment Corporation (“MPAC”), is $598,000.

13The Town submitted that in 2022, a neighbouring unit with 1,815 square feet (“sq. ft.”) was sold for $1,405,000. The subject property is 2,515 sq. ft. The Applicant agreed with the sale price of the said unit however, she stated that that unit was renovated before it was sold. The Board will consider the value of the subject property to be $1,405,000 because the subject property is 700 sq. ft. larger than the neighboring property.

14Furthermore, the Applicant owns a 2009 Toyota Venza. The Town representative stated that based on the Internet Appraisal, the value of this car is between $10,000 to $14,000.

Assets

Subject property: $1,405,000

Balance in GIC account: $696.68

Car: $12,000

Assets Total: $1,417,696.68

Liabilities

Mortgage owing: $283,085.99

Savings Account: $439.77

Liabilities Total: $283,525.76

Net worth total: $1,134,170.92

15The Applicant did not testify to any other financial liabilities or assets.

16The Township did not offer submissions or comments.

Findings on Issue 1- Ability to Pay

17After considering the Applicant’s income and expenses, the Board notes that there is a $230.31 monthly surplus income ($2,763.72 per year), which the Applicant could use to pay a portion of the 2021 taxes after incurring all the expenses including discretionary expenses like Internet, Netflix, investing in GIC, spending $550.00 for food every month while using the facilities of the food bank as well. As mentioned above, there were no documents to show how the expenses claimed by the Applicant were paid. This indicates to the Board that the Applicant was not in a negative situation when it comes to poverty.

18The Board also notes that the Applicant’s priority was to pay the monthly mortgage of $1,384.89 and other expenses without cutting from the necessities of life.

19Furthermore, the Board notes that there is a substantial amount of equity in the subject property, approximately $1,122,000. The Applicant could have accessed the equity in the home to pay her taxes.

20The 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 to determine if the Applicant is 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.

21Accordingly, the Board finds that the Applicant had the ability to partially pay the 2021 property taxes despite her illness.

Issue 2- Was the reason for the Applicant’s inability to pay the taxes in 2021 as result of either sickness or extreme poverty?

Findings on issue 2

22Having 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.

Issue 3 – What is the amount of the property taxes levied in 2021 to be cancelled, reduced, or refunded?

Findings on Issue 3

23After considering the Applicant’s monthly surplus income of $230.31, the investments in the GIC and substantial amount of equity in the home, approximately $1,122,000, the Board finds that the Applicant was able to pay, if not the full amount but at least a portion of the 2021 taxes.

ORDER

24The Board orders that the application is dismissed.