Tribunals Ontario
Tribunaux décisionnels Ontario
Assessment Review Board
Commission de révision de l’évaluation foncière
ISSUE DATE:
November 29, 2024
WR 187149
Assessed Person(s):
S.K.
Applicant(s):
S.K.
Respondent(s):
City of Hamilton
Property Location(s):
Address Withheld
Municipality(ies):
City of Hamilton
Roll Number(s):
Roll Number Withheld
Appeal Number(s):
3527433
Taxation Year(s):
2023
Hearing Event No.:
784872
Legislative Authority:
Section 357(1)(d.1) of the Municipal Act, 2001, S.O. 2001, c. 25
APPEARANCES:
Parties
Representative
S.K.
Self-represented
City of Hamilton
Linda Nimako
HEARD:
September 25, 2024 by video conference
ADJUDICATOR(S):
Dan Weagant, Member
DECISION
OVERVIEW
1S.K. (the “Applicant”) filed an application with the City of Hamilton (“City”) to have his 2023 property taxes cancelled, reduced or refunded because he 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 (“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 his inability to pay, due to sickness or extreme poverty. This requires the Board to determine:
if the Applicant was unable to pay his 2023 property taxes;
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
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 2023 to be cancelled, reduced or refunded.
Result
4The Board finds that the Applicant has failed to demonstrate that he was unable to pay the property taxes levied in 2023. The application is dismissed.
ANALYSIS
Issue 1 – Was the Applicant able to pay his property taxes in 2023?
5The Applicant and his family had an average income per month of approximately $11,997, according to his testimony and the documents produced for the hearing. This income was made up of $34,000 in legal settlement payments and a refund of pension contributions from a previous employer, $24,000 in deposits from family and friends, $85,961 in employment income, and various government program payments.
6Average monthly household expenses incurred by the Applicant in 2023 were approximately $11,669 as follows (rounded to nearest dollar):
Utilities: $895
Property taxes: $439
Car and House Insurance: $277
Car loan payments: $1,440
Fuel for three cars: $600
Mortgage: $2,624
Medications: $200
Condominium fee: $93
Food / Groceries / household expenses: $2,000
Clothing / children’s activities: $500
Student Loan payments: $89
Payments to Credit cards and Lines of Credit: $2,095
Family vacation out of province: $417
7At the end of 2023, the Applicant and his spouse had total bank balances of $5,449. In addition, there are three cars in the household; two of which were one year old in 2023. The Applicant estimates the value of those three vehicles at $38,000. The subject property is assessed at $424,000 with an estimated value in 2023 of $565,000. These assets total approximately $608,000.
8The Applicant produced documents regarding accumulated household debt in 2023 of approximately $577,000, made up of the mortgage principal ($496,000), balances on two lines of credit ($28,000), a car loan of $18,000, an outstanding Mastercard bill of $500 and outstanding student loans in the amount of $34,500.
9None of the credit facilities available to the Applicant were in arrears during 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 $5,624.51, and that at the end of the year the balance on the tax account was $0.
Findings on Issue 1
12The Board must first determine if the Applicant was able to pay his property taxes, based on the evidence available at the hearing.
13The Applicant demonstrated that he was able to continue to meet his obligations by drawing on the resources available to him and his family. The property taxes levied in 2023 were paid in full and through a frugal approach to finances, the family was also able to take a vacation together, out of province with an estimated cost of $5,000.
14At the end of the year, there was still a positive balance on the bank accounts, after the property taxes were paid. This is clear evidence that the Applicant was able to pay the property taxes in 2023.
15The Board finds therefore, that the Applicant has failed to demonstrate that he 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
16The application is dismissed.
"Dan Weagant"
DAN WEAGANT
MEMBER
Assessment Review Board
Website: www.tribunalsontario.ca/arb