Assessment Review Board
Tribunals Ontario Tribunaux décisionnels Ontario Assessment Review Board Commission de révision de l’évaluation foncière
ISSUE DATE: November 21, 2024 FILE NO.: WR 187144 Assessed Person(s): U.S.B. Applicant(s): U.B. Respondent(s): City of Mississauga Property Location(s): Address Withheld Municipality(ies): City of Mississauga Roll Number(s): Roll Number Withheld Appeal Number(s): 3523602 Taxation Year(s): 2023 Hearing Event No.: 784272 Legislative Authority: Section 357(1)(d.1) of the Municipal Act, 2001, S.O. 2001, c. 25
APPEARANCES:
Parties U.B.
Counsel/Representative Self-represented
Parties City of Mississauga
Counsel/Representative Sean Doyle
HEARD: July 11, 2024 by video conference
ADJUDICATOR(S): Dan Weagant, Member
DECISION
OVERVIEW
1U.B. (the “Applicant”) filed an application with the City of Mississauga (the “City”) to have her 2023 property taxes cancelled, reduced or refunded because she was unable to pay, due to either sickness or extreme poverty, pursuant to 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 (the “Board”) under s. 357(11) of the Act.
Issues for the Hearing
3At issue in this proceeding is whether the Applicant’s 2023 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 2023 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 2023 to be cancelled, reduced or refunded.
Result
4The Board finds that the Applicant has failed to demonstrate that she was unable to pay the property taxes levied in 2023. The application is dismissed.
ANALYSIS
Issue 1 – Was the Applicant able to pay her property taxes in 2023?
5The Applicant had an average income per month of $4,885, according to her testimony and the documents available at the hearing. This income was made up of Canada Pension Pan benefits of $27,599, ODSP of $5,958, Supports from the Region of Peel of $2,199, Federal Government supports of $ 11,068, contributions from family members of $10,800 and additional gifts from others of $1,000.
6Average monthly household expenses incurred by the Applicant in 2023 were approximately $4,026, as follows (rounded to nearest dollar):
- Condominium Fees: $978
- Telephone, internet, cell phone, cable and security: $210
- Home Insurance: $89
- Mortgage: $1,335
- Medications and health care products: $63
- Dental and eye care: $25
- Bank Charges: $29
- Credit card payments: $713
- Home repair: $84
- Food and household expenses: $500
7These figures indicate that on average, the Applicant had approximately $859 more income than expenses per month in 2023. The Applicant conducted her household finances through a single chequing account. That account had a balance of -$2,353.22 on January 1, 2023 and a balance of +$13,015.58 on December 31, 2023. From the applicant’s testimony at the Board the assistance payments provided by her family were not intended as loans and had no terms or conditions of repayment attached.
8The subject property is assessed at a value of $271,000. The Applicant estimated the market value of the unit, based on other sales in the same building at approximately $550,000. The amount owing on the mortgage and line of credit at the end of 2023 was approximately $210,000.
9In addition, the Applicant submitted that total credit card debt at the end of 2023 was approximately $21,490. The payments made to three of these accounts covered the interest accrued over the year. The payments made on the fourth credit card reduced that account to a small credit balance and then maintained its balance at near zero for the remainder of the year. None of these accounts was in arrears by the end of 2023.
10The City took no position on the application as it has delegated its authority in determining such applications to the Board for disposition.
11The City testified that the property taxes levied in 2023 totaled $2,388.97 and that no payments were made on the tax account in 2023.
Findings on Issue 1
12The Board must first determine if the Applicant was able to pay her property taxes, based on the evidence available at the hearing.
13The Applicant experienced a financial shortfall for a portion of 2023 until payments from the Government of Canada and Canada Pension Plan were received. Those were larger payments (totaling more than $27,000), presumably to make up for previous shortfalls. The effect of those deposits was to put the Applicant in a more stable financial situation to the extent that, by the end of 2023 her bank account stood at a positive balance of approximately $13,000.
14The applicant was asked why the property taxes were not paid given the balance of funds available to do so. The Applicant responded that she intended to hold these funds for future purposes and, in particular to avoid going into overdraft in her bank account in 2024 and beyond.
15The section of the Act under which this application is made is specific in its wording. Section 357.(1) of the Act states as follows:
“…the local municipality may cancel, reduce or refund all or part of taxes levied on land in the year in respect of which the application is made if,
(d1) the applicant is unable to pay taxes because of sickness or extreme poverty.”
16As indicated in paragraph [15] above, the Act requires the Board to first decide if the applicant is able to pay the taxes. Saving funds available for other purposes in future years does not indicate an inability to pay taxes. Rather, it indicates a choice not to pay the taxes levied for some other future purpose. In this case, the applicant had over $13,000 available to her to apply to the taxes levied. That is good evidence that she was able to pay the taxes.
17The Board finds therefore, that the Applicant has failed to demonstrate that she was unable to pay the property taxes levied in 2023. Accordingly, the Board also finds that there is no reason to determine the reason for any inability to pay.
ORDER
18The application is dismissed.
"Dan Weagant"
DAN WEAGANT MEMBER Assessment Review Board
Website: www.tribunalsontario.ca/arb