R.K.M. v. City of Mississauga, 2023 CanLII 90023

Tribunals Ontario

Tribunaux décisionnels Ontario

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE:

September 26, 2023

FILE NO.:

WR 185202

Assessed Person(s):

R.K.M.

Appellant(s):

R.K.M.

Respondent(s):

City of Mississauga

Property Location(s):

Address Withheld

Municipality(ies):

City of Mississauga

Roll Number(s):

Roll Number Withheld

Appeal Number(s):

3509984

Taxation Year(s):

2022

Hearing Event No.:

781566

Legislative Authority:

Section 357(1)(d.1) of the Municipal Act, S.O. 2001, c.25, as amended

APPEARANCES:

Parties

Representative

R.K.M.

Self-represented

City of Mississauga

Sean Doyle

HEARD:

September 14, 2023 by telephone conference call

ADJUDICATOR(S):

Margarita Okhovati, Member

DECISION

OVERVIEW

1R.K.M. (the “Applicant”) filed an application with the City of Mississauga (the “City”) to have his 2022 property taxes cancelled, reduced or refunded because he was unable to pay, due either to sickness or extreme poverty, under Section 357 (1)(d.1) of the Municipal Act, S.O. 2001, c.25 as amended (the “Act”).

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 58-year-old married man. In 2022, he lived in the subject property with his wife and 17-year-old daughter. In 2019, he became ill with back pain and other health problems and consequently, he stopped working and since he has been unemployed. He sought treatment both in Canada and the United States however, his health issues have persisted up to date.

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:

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

5Based on the evidence before it, the Board finds that the Applicant has failed to demonstrate that he 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 three bank account statements. In 2022, the Applicant’s household income, based on the Financial Information Form was $2,474 which came from borrowing funds from line of credit and Registered Retirement Savings Plan (“RRSP”) and child credit to cover his expenses.

7Average monthly expenses of the Applicant incurred in 2022 were approximately $3,777.58 and are summarized as follows:

EXPENSES

Mortgage:

$0

Property tax:

$509.60

Home insurance:

$150.00

Water:

$75.00

Heat:

$140.00

Hydro:

$154.00

Internet and telephones

$190.00

Groceries

$900.00

Interest on credit card:

$1,558

Interest on line of credit:

$101.00

NET TOTAL

Income Total

$2,474.00

Expenses Total

$3,777.58

Net Total

-$1,303.58

8The current value of the subject property for the 2022 taxation year, as determined by the Municipal Property Assessment Corporation (“MPAC”), is $737,000. The City did not provide the Board with the value of the subject property in 2022 considering the value of the similar properties sold in the vicinity of the subject property. Therefore, the Board accepts MPAC’s valuation as the value of the subject property for the 2022 taxation year.

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

ASSETS

Subject Property:

$737,000.00

Chequing Account:

$1,696.73

RRSP:

$170,000.00

Cash

$500.00

Assets Total:

$909,196.73

LIABILITIES

Mortgage owing

$0

Credit cards balance:

$1,248.75

Line of credit:

$49,769.52

Liabilities Total:

$51,018.27

10Subtracting the Applicant’s total liabilities of $51,018.27 from his total assets of $909,196.73 results in a total net worth of 858,178.46 for the 2022 taxation year.

11The City testified that the property taxes levied in 2022 totalled $6,115.17. The City stated further that the Applicant owed four years of property taxes (2019-2022) however, at the end of 2022 the balance on the tax account was $0.

12Furthermore, the Board notes the following discrepancies between the Applicant’s written and oral testimonies:

1. The Applicant in his letter dated July 25, 2022, addressed to the City, stated that he had a wife and two children but in the Financial Information Form and orally he stated that he had a wife and a minor child. However, this discrepancy was not brought to the Applicant’s attention for his possible explanation.

2. The Applicant in the Financial Information Form stated that he was not in possession of a car. However, in his CIBC credit card statement, there are numerous charges for purchasing gas on regular basis from Petro Canada, Shell and Pioneer and even a charge of $219 dated March 14 by Mr. Lube. When asked to explain this discrepancy, the Applicant stated that he had to purchase gas for rented cars. When asked again why did change the oil of a rented car, he said he just did so.

13Most importantly, the Applicant testified that he was not poor and had no financial problem in 2022. He appealed his 2022 property taxes assuming that he could base his appeal on sickness.

14The City took no position on the application as it has delegated its authority in determining such applications to the Assessment Review Board for disposition.

Findings on Issue 1- Ability to Pay

15The Board notes that the monthly income as reported, is approximately $1,303.58 less than the monthly expenses incurred in 2022. However, this amount is after the Applicant paid $28,071.44 for the outstanding taxes, travelling, purchasing items from airport duty free shop, taking Limousine services and taxis, eating outside while spending $900 monthly on groceries, pet expenses, paying $4,118 to niece’s school fees, etc. Moreover, the Applicant was in possession of $1,696 in his checking account, $170,000 in the RRSP and $737,000 equity in the home. He could access these funds to further help him for his expenses in 2022. In addition, the Applicant had $0 mortgage on the subject property. In the opinion of the Board, not only did the Applicant not cut from the necessities of life but he was able to maintain his life as he wanted. This indicates to the Board that the Applicant was not in a negative situation when it came to poverty.

16In 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.

17M.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.

18The Board finds therefore that the Applicant has failed to demonstrate that he was unable to pay the property taxes levied in 2022.

19Having decided that the Applicant was able to pay the property taxes in 2022 as he did, the Board has no reason to consider whether the Applicant was in a condition of sickness or extreme poverty.

ORDER

20The Board orders that the application for reduction, cancellation or refund of the 2022 property taxes is dismissed.