Tribunals Ontario Tribunaux décisionnels Ontario Assessment Review Board Commission de révision de l’évaluation foncière
ISSUE DATE: December 03, 2024
Assessed Person(s): P.S.
Applicant(s): P.S.
Respondent(s): Township of Laird
Property Location(s): Address Withheld
Municipality(ies): Township of Laird
Roll Number(s): Roll Number Withheld
Appeal Number(s): 3523089
Taxation Year(s): 2023
Hearing Event No.: 784304
Legislative Authority: Section 357(1)(d.1) of the Municipal Act, 2001, S.O. 2001, c. 25
APPEARANCES:
Parties P.S.
Representative Self-represented
Parties Township of Laird
Representative Jennifer Errington
HEARD: August 6, 2024 by video conference
ADJUDICATOR(S): Dan Weagant, Member
DECISION
OVERVIEW
1P.S. (the “Applicant”) filed an application with the Township of Laird (“Township”) 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 Township 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 had a total income of $42,973.51 in 2023, according to his testimony and the documents he produced for the hearing. Total household expenses incurred by the Applicant in 2023 were $30,863.09, as follows:
- Utilities: $2,937.15
- First and second mortgage payments: $18,442.45
- Dental care: $578.00
- Photocopying and office supplies: $1,858.34
- Property taxes: $1,112.85
- Bank fees: $75.16
- Food and household expenses: $4,169.15
- Miscellaneous (charitable donations, medical, cash expenditures without receipts): $1,689.99
6These figures indicate that the Applicant had approximately $12,110 more income than expenses in 2023. The Applicant conducted his household finances through two accounts. The balance at the end of 2023 in the first account was $7,727.36 and the balance at the end of 2023 in the second account was $3,887.96, for a total of $11,615.32.
7In addition to the expenses above, the Applicant submitted that there were additional ‘deemed’ expenses that should be accounted for in determining his total expenses in 2023. Those deemed expenses are as follows:
- Transportation provided to the Applicant by friends and neighbours.
- Snow removal at the subject property provided by a neighbour.
- House insurance premium (no property insurance is in place).
- Deferred maintenance on the subject property.
8The Applicant believes these deemed expenses should be considered by the Board as part of the income/expense ledger. He argues that, had he spent money on these things, the total would be more or less equivalent to the surplus bank balances at the end of 2023, meaning that there would not be any funds available to pay property taxes.
9The Township took no position on the application as it has delegated its authority in determining such applications to the Board for disposition.
10The Township testified that the property taxes levied in 2023 totaled $2,167.90 and that no payments were made by the Applicant toward this amount.
Findings on Issue 1
11The Board must first determine if the Applicant was able to pay his property taxes, based on the evidence available at the hearing.
12The Applicant’s documents were very clear as to the financial position he held at the end of 2023. He had over $11,000 in the bank. The Board rejects the Applicant’s submission that the ‘deemed’ expenses should be included as expenses and that the total value of those expenses are approximately $12,000. The Applicant provided no documentary evidence of what the dollar value was for any of these expenses.
13When asked why the balance available at the end of 2023 was not used, in part, to pay the property taxes levied, the Applicant responded that he made no tax payments because the balance on the property tax account at that time was zero.
14The section of the Act under which this application is made is specific in its wording. s. 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. (Emphasis added.)
15The issue of whether the property tax account indicates tax liability or if the taxes levied are to be considered was addressed in the Board’s decision P.S. v Township of Laird, 2023 CanLII 149640 (ON ARB), RD 23-021, where the Board determined that applications made under this section of the Act must address the taxes levied in a given year and not taxes reflected in a tax account statement. The taxes levied in 2023 and subject to this application amounted to $2,167.90 as indicated in the documentary evidence.
16The Applicant had over $11,000 available at the end of 2023 that he could have applied to the taxes levied. That is good evidence that he was able to pay the taxes. Choosing not to pay taxes is not the same as an inability to pay them.
17The 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
18The application is dismissed.
"Dan Weagant"
DAN WEAGANT MEMBER Assessment Review Board Website: www.tribunalsontario.ca/arb