P.S. v. Municipal Property Assessment Corporation Region 31, 2023 CanLII 72547

Tribunals Ontario Tribunaux décisionnels Ontario

Assessment Review Board Commission de révision de l’évaluation foncière

ISSUE DATE: August 03, 2023

FILE NO.: WR 184751

Assessed Person(s): P.S.

Applicant(s): P.S.

Respondent(s): Municipal Property Assessment Corporation Region 31

Respondent(s): Township of Laird

Property Location(s): Address Withheld

Municipality(ies): Township of Laird

Roll Number(s): Roll Number Withheld

Appeal Number(s): 3509760

Taxation Year(s): 2022

Hearing Event No.: 779487

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

APPEARANCES:

Parties / Representative

P.S. / Self-represented

Township of Laird / Jennifer Errington

HEARD: July 11, 2023 by telephone conference call

ADJUDICATOR(S): Dan Weagant, Member

DECISION

OVERVIEW

1P.S. (the “Applicant”) filed an application with the Township of Laird (“Township”) to have his 2022 property taxes cancelled, reduced or refunded because he was unable to pay, due to either sickness or extreme poverty. The application was filed pursuant to s. 357(1)(d1) of the Municipal Act, 2001, S.O. 2001, c. 25 (“Act”).

2The Township 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.

Issues for the Hearing

3At issue in this proceeding is whether the Applicant’s 2022 property taxes should be cancelled, reduced or refunded because of his inability to pay, due to sickness or extreme poverty. This requires the Board to determine:

1. if the Applicant was unable to pay his 2022 property taxes;
2. if the Board determines he was unable to pay his property taxes, the Board must then determine if the reason he was unable to pay was either sickness or extreme poverty; and
3. if the Board determines he 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

4The Board finds that the Applicant was unable to pay the property tax levied in 2022, due to sickness or extreme poverty. The property tax levied by the Township for the 2022 taxation year was $0. Accordingly, the taxes to be cancelled, reduced or refunded is $0.

ANALYSIS

Issue 1 – Was the Applicant able to pay his property taxes in 2022?

5P.S. testified that he had income in the amount of approximately $ 3,272 per month in 2022. This total was comprised of Canada Pension Plan benefits, Old Age security benefits, Ontario Trillium Benefit, GST rebates and an Ontario College pension. The total income was verified by deposits shown in the Applicant’s bank account records for 2022.

6Monthly expenses incurred by the household in 2022 averaged approximately $3,350. These expenses are summarized as follows (all rounded to the nearest dollar):

• Canada Life Loan payments: $2,419
• Utilities: $251
• Groceries and general household expenses: $585
• Bank fees: $5
• Property taxes: $90*

*These are property taxes paid, per an agreement the Applicant had with the adjacent owners (family members), on an adjacent property. These payments are required in order for the Applicant to maintain residency at his property.

7The Applicant testified that he relied on friends for transportation to larger centres for grocery and other shopping needs.

8The Applicant testified that in 2022, he had a total of $181,430 in assets, comprised of the subject property, an RRSP and life insurance surrender value. He further testified that the life insurance surrender value and the RRSP were linked to the mortgage owing and are therefore unavailable for any use except to pay down that mortgage if they are redeemed. That mortgage exceeds $400,000.

9In the Board’s view, the Applicant is in an untenable financial situation. The Board finds that the Applicant made all reasonable efforts to provide for himself and the upkeep of the subject property in 2022, with limited financial resources.

10According to the Applicant, there was also a significant amount of deferred maintenance required at the subject dwelling, including a chimney repair / replacement, roof repair and a ‘box sill replacement’ totaling approximately $25,000.

11The Township noted that the balance of the subject 2022 property tax account stood at $0, owing to the application of a previous decision of this Board by the Township.

Findings on Issue 1

12The Board must determine if the Applicant was able to pay his property taxes, based on the evidence available at the hearing. The evidence shows that the expenses attributed to basic household needs were $80 more than the income, on an average monthly basis.

13If, after meeting the necessities of life and care, applicants are not able to pay some or all of their taxes, the Board has frequently found that this indicates an inability to pay all or some of the property taxes.

14In this case, the Applicant’s necessary household expenses, as testified to, were more than the total household income during 2022. Without assistance from friends, he would not have met these necessary expenses.

15This average, monthly difference in income versus expenses supports the finding that there was no money available to the Applicant for the payment of property taxes, after all of the costs associated with the necessities of life and self-care for the Applicant are accounted for.

16The Board finds therefore that the Applicant was unable to pay the property taxes levied in 2022.

Issue 2 – Was the reason the Applicant was unable to pay their property taxes in 2022 either sickness or extreme poverty?

17As the Board has determined that the Applicant was unable to pay the property taxes levied in 2022, there remains the question of why that is the case. The Applicant testified to his financial obligations, the significant amount of money he owes, and the restrictions placed on him should he attempt to draw on the limited resources he has. The Applicant was not able to pay. The Board finds therefore, that the Applicant was unable to pay the property tax levied in 2022 due to extreme poverty.

Issue 3 – What is the amount of taxes to be cancelled, reduced or refunded in 2022?

18At the beginning of 2022, the tax account for the subject property stood at a balance of $0, resulting from the Township’s application of a previous decision of this Board. Therefore, the taxes levied for 2022 is $0.

19This Board only has the authority to cancel, reduce or refund taxes levied for the year for which the application is made. Since the taxes levied in 2022 amounted to $0, that is the value of the cancellation.

ORDER

20The Board orders that the property tax levied in 2022 is cancelled in the amount of $0.

COSTS

21At the conclusion of the hearing, the Applicant indicated his intention to seek costs from the Township. The issue of requests for costs is addressed in the Board’s rules 106 through 108. Those rules are reproduced below:

Board May Order Costs

106. Where a party requests that another party pay costs, the Board shall not grant the request unless the conduct or course of conduct of the other party has been unreasonable, frivolous or vexatious, or the other party has acted in bad faith.

Timing of Costs Request

107. A request for costs shall be made to the Board in writing and shall be served on all parties within 30 days of the issuance of the decision or order for which costs are requested.

Content of Submissions

108 A submission on costs shall set out the reasons for the request, the particulars of the party’s conduct that are alleged to be unreasonable, frivolous, vexatious or in bad faith, and the particulars of amounts requested.