W.K. and E.K. v. City of Mississauga, 2024 CanLII 103629

Assessment Review Board

Tribunals Ontario Tribunaux décisionnels Ontario Assessment Review Board Commission de révision de l’évaluation foncière

ISSUE DATE: October 23, 2024 FILE NO.: WR 186894

Assessed Person(s): W.K.; E.K. Applicant(s): E.K. Respondent(s): City of Mississauga Property Location(s): Address Withheld Municipality(ies): City of Mississauga Roll Number(s): Roll Number Withheld Appeal Number(s): 3523579 Taxation Year(s): 2023 Hearing Event No.: 784770

Legislative Authority: Section 357(1)(d1) of the Municipal Act 2001, S.O. 2001, c. 25

APPEARANCES:

Parties W.K.; E.K. City of Mississauga

Representative Self-represented Sean Doyle

HEARD: September 24, 2024 by video conference call

ADJUDICATOR: Christopher Voutsinas, Vice Chair

DECISION

OVERVIEW

1W.K. and E.K. (the “Applicants”) filed an application with the City of Mississauga (the “City”) to have their 2023 property taxes cancelled, reduced or refunded because they were unable to pay due to either sickness or extreme poverty, per s. 357(1)(d1) of the Municipal Act, 2001, S.O. 2001, c. 25 (the “Act”).

2Per s. 357(11) of the Act, the City passed a by-law, delegating its authority to determine such applications to the Assessment Review Board (the “Board”).

Background

3In 2023 the Applicants resided at the subject property. W.K. and E.K. are both retired and are on a fixed income consisting of an employment-related pension, CPP, and pensions from the government of Poland.

Issues for the Hearing

4At issue in this proceeding is whether the Applicants’ 2023 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:

1. If the Applicants were unable to pay their 2023 property taxes;
2. If the Board determines they were unable to pay their 2023 property taxes, the Board must then determine if the reason they were unable to pay was due to either sickness or extreme poverty; and
3. If the Board determines they were unable to pay due to either sickness or extreme poverty, the Board must then decide the amount of the property taxes levied in 2023 to be cancelled, reduced or refunded.

Result

5The Board finds that the Applicants’ property taxes for the 2023 taxation year be reduced by $1,400 and a corresponding refund issued by the City.

ANALYSIS

Issue 1 – Were the Applicants able to pay their property taxes in 2023?

6Among other things, the Applicants submitted the following documents in support of their application:

1. summary of income and expenses;
2. bank account statements;
3. annual mortgage statement;
4. RRSP statement;
5. medical/pharma receipts;
6. tax returns and related documents.

7The Applicants’ submissions and testimony described various household expenses incurred in 2023 such as the following.

− Mortgage payments − Credit Card payments − Groceries / Household items − Utilities − House and Automobile insurance − Car expenses − Property Tax payments

8For 2023, bank records provided by the Applicants show an opening balance of $1,398 (Jan 3/23) and a closing balance of $76.21 (Dec 28/23) – demonstrating a depletion in working cash.

9The Applicants testified that they kept their year-end credit card balances to $0, that they had a year-end line of credit balance of $2,500, and a mortgage payable of $250,921 as of December 31, 2023.

10Their records also show that all necessary household and living expenses, including mortgage payments were paid throughout 2023. Their records demonstrate disciplined and controlled expenditures.

11The Applicants testified that while they were able to pay their property taxes and other expenses that this necessitated periodic contributions from their adult children for home repairs, paying credit card balances, emergency funds, and other things.

12The Applicants argued that they did not have the current financial resources to pay their property taxes in full as they required external financial support from their children and that doing so caused undue hardship.

13The City submitted that the property taxes levied in 2023 were $439 per month or $5,268 for the 2023 taxation year. In their submissions, the Applicants showed $5,271 as the 2023 property taxes they paid.

14The City took no position on the application but did cross-examine the Applicants regarding elements of their income and expenses per their submissions. The City stated that they deferred to the Board in connection with any decision.

Findings on Issue 1

15The Board finds that the Applicants were unable to pay their property taxes in full due to extreme poverty but were otherwise able to do so by depleting bank balances, seeking funds from family members, and prudent control of expenditures.

Issue 2 – What was the reason for the Applicants’ inability to pay a portion of the taxes levied in 2023?

16Having determined that the Applicants were unable to pay a portion of the taxes levied in 2023, the Board must determine the reason for that inability to pay. In order for the application to be successful, the two reasons set out in the Act are sickness or extreme poverty.

17While the Applicants testified to having medical issues – a spinal injury in the case of E.K. and heart problems in the case of W.K. that prevented them from working any longer, they stated that their application was being made under the extreme poverty provision.

18Therefore, the question before the Board is whether extreme poverty applies in this matter. This term is not defined in the Act. The Board’s determination on this issue depends on the specific circumstances experienced by the Applicants in 2023.

19Based on the submissions and testimony of the Applicants, the Board is satisfied that in this case, for the 2023 taxation year, the Applicants’ situation is that of extreme poverty as it required, among other things, financial contributions from their children and the depletion of bank balances.

ORDER

20The Board orders the property taxes levied by the City for the 2023 taxation year be reduced by $1,400 and a corresponding refund issued by the City.