Tribunals Ontario
Tribunaux décisionnels Ontario
Assessment Review Board
Commission de révision de l’évaluation foncière
ISSUE DATE: January 10, 2023
Assessed Person(s): D.G.
Applicant(s): L.G., D.G.
Respondent(s): City of Hamilton
Property Location(s): Address Withheld
Municipality(ies): City of Hamilton
Roll Number(s): Roll Number Withheld
Appeal Number(s): 3491861
Taxation Year(s): 2021
Hearing Event No.: 777976
Legislative Authority: Section 357(1)(d1) of the Municipal Act 2001, S.O. 2001, c. 25
APPEARANCES:
Parties
Representative
D.G., L.G.
L.G.
City of Hamilton
Linda Nimako
HEARD: December 6, 2022 by telephone conference call
ADJUDICATOR(S): Dan Weagant, Member
DECISION
OVERVIEW
1D.G. and L.G. (the “Applicants”) filed an application with the City of Hamilton (“City”) to have their 2021 property taxes cancelled, reduced or refunded because they were unable to pay, due to either sickness or extreme poverty, under s. 357(1)(d1) of the Municipal Act, 2001, S.O. 2001, c. 25 (“Act”).
2The City has passed a by-law, delegating its authority to determine such applications to the Assessment Review Board (“Board”) under s. 357(11) of the Act.
Background
3In 2021 the Applicants and their daughter J.G. resided at the subject property. L.G. and D.G. were retired and J.G. had an income derived from Ontario Works benefits.
Issues for the Hearing
4At issue in this proceeding is whether the Applicants’ 2021 property taxes should be cancelled, reduced or refunded because of an inability to pay, due to sickness or extreme poverty. This requires the Board to determine:
if the Applicants were unable to pay their 2021 property taxes;
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; and
if the Board determines they were unable to pay due to sickness or extreme poverty, the Board must then decide the amount of the property taxes levied in 2021 to be cancelled, reduced or refunded.
Result
5The Board finds that the Applicants were able to pay the property taxes levied in 2021. The application is dismissed.
ANALYSIS
Issue 1 – Were the Applicants able to pay their property taxes in 2021?
6The Applicants’ documents and testimony indicated that the household income in 2021 was $34,954 derived from:
− CPP (D.G. and L.G.): $12,391
− OAS (D.G.): $7,487
− Proceeds from D.G.’s RRIF: $1,635
− Ontario Works benefits (J.G.): $4,452
− Other Federal Supplements: $8,989
7The Applicants’ documents and testimony show that the following household expenses were incurred in 2021. Amounts shown are average monthly expenses.
− Mortgage and Line of Credit payments: $400
− Credit card payments: $200
− Groceries / household items: $500
− Heating oil, electric and water service: $348
− Phone, internet and telecom: $457
− Automobile insurance: $163
− House insurance: $136
− Automobile expenses: $157
− Medications and hearing aids: $225
− Private health insurance premiums: $237
− Property tax payments made for previous years: $33
− Expenses for property in neighbouring municipality (taxes, utilities and insurance): $148
8The total annual income of $34,954 is equivalent to a monthly average of $2,913. Total average monthly expenses as indicated in evidence were $3,004. Bank records provided by the Applicants show a total closing balance of all accounts of approximately $896 at the end of December 2021. Those records also show that all of the household expenses, including mortgage payments were paid throughout 2021.
9L.G. testified that in addition to the subject property, other tangible assets of the family include an older pickup truck driven by D.G., a second older automobile driven by L.G. and a motorcycle owned by D.G.
10L.G. testified that D.G. owns a second property in another municipality. It is improved with a cabin or cottage that is serviced only with electricity. The assessed value for the 2021 taxation year was $44,000. There was no mortgage on that property.
11Total expenses related to the second property were approximately $1,776 annually, made up of property insurance (estimated by the Board at $815, or 1/3 of the property insurance premiums paid by the Applicants on both properties), hydro-electric service ($432) and property taxes ($529).
12L.G. testified that she operated a small business in 2021. Bank records in evidence reflect multiple deposits and expenses related to this business. The income and expenses reflected in those records are nearly equivalent. L.G. explained that she received additional cash payments above and beyond the costs attributed to the business and that cash was used