Tribunals Ontario

Tribunaux décisionnels Ontario

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE: September 22, 2023

FILE NO.: WR 185197

Assessed Person(s): T.M.

Appellant(s): T.M.

Respondent(s): City of Toronto

Property Location(s): Address Withheld

Municipality(ies): City of Toronto

Roll Number(s): Roll Number Withheld

Appeal Number(s): 3516230

Taxation Year(s): 2022

Hearing Event No.: 780481

Legislative Authority: Section 323(1)(e) of the City of Toronto Act, 2006, S.O. 2006, c. 11, Sched. A

Parties

Representative

Self-represented

City of Toronto

Graham Thomson; Barry Henaut

HEARD: September 19, 2023 by telephone conference call

ADJUDICATOR(S): Margarita Okhovati, Member

OVERVIEW

1T.M. (the “Applicant”) filed an application with the City of Toronto (the “City”) to have her 2022 property taxes cancelled, reduced or refunded because she was unable to pay, due either to sickness or extreme poverty, under Section 323(1)(e) of the City of Toronto Act, 2006, S.O. 2006, c. 11, Sched. A.

2The City has passed a by-law delegating its authority to determine such applications to the Assessment Review Board (the “Board”).

Background

3The Applicant is a 48-year old divorced woman who has three children. In 2022 she lived with her youngest son in the subject property. Presently, all her three children are studying in different universities supported by Ontario Student Assistance Program (“OSAP”). She testified that in 2021 a skin cancer was removed from her head leaving her with chronic migraine. Her income in 2022 was from working as a property manager, delivering Uber food, renting out rooms in her property, child tax benefits, Trillium benefits, Goods and Services Tax (“GST”) and Harmonized Sales Tax (“HST”).

Issues for the Hearing

4The 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

5Based on the evidence before it, the Board finds that the Applicant has failed to demonstrate that she was unable to pay the property taxes levied in 2022. Therefore, the Board dismisses this application.

ANALYSIS

Issue 1 – Was the Applicant unable to pay the property taxes levied in 2022?

6The Applicant submitted copies of four bank account statements. In 2022, the Applicant’s household income, based on the Financial Information Form was $3,250.00, which was derived from managing a property, working as a cleaning lady, renting out a part of the subject property, Uber food delivery, child tax and trillium benefits and GST/PST refunds.

7Average monthly expenses of the Applicant incurred in 2022 were approximately $3,618.36 and are summarized as follows:

EXPENSES

Mortgage:

$1,328.39

Property tax:

$396.04

Home insurance:

$175.00

Water:

$39.02

Heat:

$116.16

Hydro:

$3.75

Internet

$50.00

Cell phone:

$100.00

Groceries

$200.00

House supplies:

$20.00

Interest on credit card:

$700.00

Car insurance

$190.00

Car repair:

$50.00

Gas:

$250.00

NET TOTAL

Income Total

$3,250.00

Expenses Total

$3,618.36

Net Total

-$368.36

8The Municipal Property Assessment Corporation’s estimated value of the subject property for the 2022 taxation year is $858,000. The City submitted that in 2022, the average price of similar properties sold in the vicinity of the subject property was $1,300,000. The Applicant confirmed this figure by stating that this value was confirmed by a realtor as well.

9The following tables detail the Applicant’s assets and liabilities in 2022.

ASSETS

Subject Property:

$1,300,000.00

Chequing Account:

$1,354.09

RRSP:

$2,025.00

Car:

$15,000

Assets Total:

$1,318,379.09

LIABILITIES

Mortgage owing

$352,420.38

Credit cards balance:

$31,867.03

Liabilities Total:

$384,287.41

10Subtracting the Applicant’s total liabilities of $384,287.41 from her total assets of $1,318,379.09 results in a total net worth of $934,091.68 for the 2022 taxation year.

11The City’s position is to dismiss the application because in 2022, the Applicant was able to pay her property taxes.

12The City testified that the property taxes levied in 2022 totalled $5,828.91.

Findings on Issue 1- Ability to Pay

13The Board notes that the monthly income as reported, is approximately $368.36 less than the monthly expenses incurred in 2022. However, this amount as stated by the City is after the Applicant paid a monthly mortgage of $1,328.39 and several credit card payments particularly, $5,000 towards her Canadian Imperial Bank of Commerce (“CIBC”) credit card. In addition, the Applicant had $2,025.00 in Registered Retirement Savings Plan (“RRSP”) and in December 2022 approximately $8,000.00 was also available to her in her CIBC credit Card, which would have assisted her to pay her property taxes. Furthermore, the Board notes as well that the Applicant could have accessed approximately to $947,580 equity in her home to assist her to pay the property taxes.

14In 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 his expenditures is left with no means of being able to pay some or all of their property taxes.

15M.M.U. is instructive in this case. It requires an Applicant to make use of the resources available to first address their expenses relating to the necessities of life and to maintaining their property. In this case the Applicant has demonstrated that she was able to draw on her own resources as a means of meeting her financial obligations throughout 2022.

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

17Having decided that the Applicant was able to pay the property taxes in 2022, the Board has no reason to consider whether the Applicant was in a condition of sickness or extreme poverty.

ORDER

18The Board orders that the application for reduction, cancellation or refund of the 2022 property taxes is dismissed.

"Margarita Okhovati"

MARGARITA OKHOVATI

MEMBER