Tribunals Ontario Tribunaux décisionnels Ontario Assessment Review Board Commission de révision de l’évaluation foncière
ISSUE DATE: July 24, 2023
Assessed Person(s): P.H.
Applicant(s): P.H.
Respondent(s): City of Mississauga
Property Location(s): Address Withheld
Municipality(ies): City of Mississauga
Roll Number(s): Withheld
Appeal Number(s): 3509882
Taxation Year(s): 2022
Hearing Event No.: 779482
Legislative Authority: Section 357(1)(d.1) of the Municipal Act, 2001, S.O. 2001, c. 25
APPEARANCES:
| Parties | Representative |
|---|---|
| P.H. | Self-represented |
| City of Mississauga | Sean Doyle |
HEARD: June 15, 2023 by telephone conference call
ADJUDICATOR(S): Dan Weagant, Member
DECISION
OVERVIEW
1P.H. (the “Applicant”) filed an application with the City of Mississauga (“City”) to have her 2022 property taxes cancelled, reduced or refunded because she was 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
3At the beginning of 2022, the Applicant was un-employed and looking for work. In mid-April she found a job but was only able to work for approximately one month.
4In May of 2022 she became ill and testified that she was unable to work until mid-October, at which time she took on part-time employment. The Applicant testified that she was only employed for approximately three and a half months in 2022, causing financial stress, and rendering her unable to pay the property taxes levied in 2022, without having to borrow the money to do so.
Issues for the Hearing
5At issue in this proceeding is whether the Applicant’s 2022 property taxes should be cancelled, reduced or refunded because of her inability to pay, due to sickness or extreme poverty. This requires the Board to determine:
- if the Applicant was unable to pay her 2022 property taxes;
- 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; and
- if the Board determines she was unable to pay due to sickness or extreme poverty, the Board must then decide the amount of the property taxes levied in 2022 to be cancelled, reduced or refunded.
Result
6The Board finds that the Applicant has failed to demonstrate that she was unable to pay the property taxes levied in 2022. The application is dismissed.
ANALYSIS
Issue 1 – Was the Applicant able to pay her property taxes in 2022?
7The Applicant had $2,030 in income per month, according to her testimony and the documents available at the hearing. This income was made up of Employment Insurance payments, employment income and a Canada Revenue Agency (“CRA”) income tax refund from her 2021 income tax return.
8Average monthly household expenses incurred by the Applicant in 2022 were approximately $4,019 as follows (rounded to nearest dollar):
- Transportation: $80
- Whole Life Insurance premiums: $1,009
- Property taxes: $426
- Cell phone: $25
- Mortgage: $1,824
- Food / Groceries / household expenses: $600
- Medication and health expenses: $55
9The Applicant testified that she borrows funds to help pay her expenses. The monthly shortfall in 2022 was made up from withdrawals from her Line of Credit. Those payments were approximately $312 per month.
10The Applicant testified that her ex-spouse pays for utility costs related to the subject property and all expenses related to an automobile used by the Applicant.
11The subject property is assessed at a value of $616,000. The amount owing on the mortgage at the end of 2022 was approximately $361,000. This leaves equity in the subject property of approximately $250,000.
12Other assets held by the Applicant include a Tax Free Savings Account (“TFSA”) with a value of $2,789, cash value in the whole life policy of approximately $3,000, $922 in her savings account and a Registered Retirement Savings Plan (“RRSP”) account with a value of approximately $8,700.
13The City took no position on the application as it has delegated its authority in determining such applications to the Board for disposition.
14The City testified that the property taxes levied in 2022 totaled $5,111.18 and that at the end of 2022, the balance on the tax account was $0.
15Further, the City accepted the fact that during a part of 2022, the Applicant was sick and unable to work.
Findings on Issue 1
16The Board must first determine if the Applicant was able to pay her property taxes, based on the evidence available at the hearing.
17The shortfall experienced by the Applicant on overall household expenses incurred in 2022 (including the payment of the entirety of the property taxes levied) was made up by accessing the available equity reflected in the Applicant’s line of credit, and by contributions from her ex-spouse.
18In M. M. U. v Toronto (City), 2015 CanLII 46826 (ON ARB) (“M.M.U.”), at paragraph 21 the Board held that:
In order to qualify under this section of the Act, the Applicant is required to show that every reasonable effort has been made to pay all or part of the taxes. There is an expectation that to qualify for relief under this section of the Act the condition cannot be one where an individual simply cannot make ends meet but amounts to a situation where the Applicant after having called upon every resource available to him and having applied every reasonable means to mitigate and manage his expenditures is left with no means of being able to pay some or all of their property taxes.
19M.M.U. is instructive in this case. It requires an Applicant to make use of the resources available to first address her expenses relating to the necessities of life and to maintaining her property. In this case, the Applicant has demonstrated that she was able to draw on her own resources, and those of family and friends as a means of meeting her financial obligations throughout 2022.
20At the end of 2022, the Applicant had over $15,000 available, in a TFSA, an RRSP, a savings account and a cash value balance in a whole life insurance policy, after all household expenses were covered, including property taxes. Despite her financial challenges in 2022, this is clear evidence that the Applicant was able to pay the property taxes in 2022.
21The Board finds therefore, that the Applicant has failed to demonstrate that she was unable to pay the property taxes levied in 2022. Accordingly, the Board also finds that there is no reason to determine the reason for any inability to pay.
ORDER
22The application is dismissed.
"Dan Weagant"
DAN WEAGANT MEMBER Assessment Review Board
Website: www.tribunalsontario.ca/arb