M.A.N. v. City of Hamilton, 2024 CanLII 63721

Tribunals Ontario

Tribunaux décisionnels Ontario

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE:

July 03, 2024

FILE NO.:

WR 186501

Assessed Person(s):

M.A.N.

Appellant(s):

M.A.N.

Respondent(s):

City of Hamilton

Property Location(s):

Address Withheld

Municipality(ies):

City of Hamilton

Roll Number(s):

Roll Number Withheld

Appeal Number(s):

3523607

Taxation Year(s):

2023

Hearing Event No.:

784316

Legislative Authority:

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

APPEARANCES:

Parties

Representative

M.A.N.

Self-represented

City of Hamilton

Linda Nimako

HEARD:

June 24, 2024, by video conference call

ADJUDICATOR(S):

Margarita Okhovati, Member

DECISION

OVERVIEW

1M.A.N. (the “Applicant”) filed an application with the City of Hamilton (the “City”) to have his 2023 property taxes cancelled, reduced or refunded because he was unable to pay, due either to sickness or extreme poverty, under s. 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 a 41 year old self employed single man. In 2021, he purchased the subject property for $535,000. He both lived in and rented out the property since its purchase.

Issues for the Hearing

4The 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:

1. if the Applicant was unable to pay his 2023 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 2023 to be cancelled, reduced or refunded.

5In this case, the property taxes levied on the Applicant’s home for 2023 taxation year was $2,407.77. They were paid in full, therefore, the remedy requested in this application was for a refund of the taxes paid.

Result

6Based on the evidence before it, the Board finds that the Applicant was able to pay his 2023 taxes. Therefore, the Board dismisses this application.

ANALYSIS

Issue 1 – Was the Applicant unable to pay the property taxes levied in 2023?

7The Applicant submitted a copy of two bank account statements, checking and line of credit with the Toronto Dominion Bank (“TD”). He testified orally that in 2023, he was in possession of a personal and a business credit cards but he did not disclose the statements of those accounts. This is a significant omission although it was mentioned in the pre-hearing conference and later in the Procedural Order regarding the importance of these documents for reaching a decision. As well, the Applicant did not complete the monthly income section of the Financial Information Form. Therefore, in the absence of credit card statements, the Board had to rely mostly on the Applicant’s oral testimony with respect to all the expenditure incurred in 2023, particularly, the $8,104.50 debt on the credit cards he stated orally and in the Financial Information Form.

8The balance in the Applicant’s TD checking account as of December 31, 2023, is $7,421.09.

9The Applicant’s monthly total income in 2023 is $2,725.47. This total amount is derived mostly from self-employment and rents generated from the subject property.

10Monthly expenses reported by the Applicant for 2023, totaled approximately $3,610.08 and are summarized in the following table 1.

TABLE 1 - EXPENSES

Mortgage:

$1,899.81

Gas

$88.79

Hydro/water

$102.25

Water heater rental:

$27.43

Telephone/internet:

$54.82

Home insurance:

$75.71

Car insurance:

$186.33

Car payment:

$257.52

Gas for car:

$150.00

Car repairs:

$12.07

Food:

$100.00

Credit card payment:

$596.04

Good Life Fitness Club:

$59.31

Expenses Total

$3,610.08

11Deducting the monthly total expenses from the monthly total income results in a net total monthly income loss of $884.81. As mentioned above.

TABLE 2 – NET TOTAL

Income Total

$2,725.27

Expenses Total

$3,610.08

Net Total

-$884.81

12The City did not provide the Board with the value of similar properties sold in 2023 in the vicinity of the subject property. Therefore, the Board accepts the sale price of the subject property in 2021 as the value of the subject property for the 2023 taxation year.

13The following tables detail the Applicant’s assets and liabilities for the 2023 taxation year.

TABLE 3 – ASSETS

Subject Property:

$535,000.00

Property in Mexico:

$24,000.00

Balance in checking account:

$7,421.09

Cash:

$291.60

Assets Total:

$566,712.69

TABLE 4 – LIABILITIES

Mortgage owing:

$484,127.50

Line of credit:

$17,042.57

Credit card:

$8,104.59

Liabilities Total:

$509,274.66

14Subtracting the Applicant’s total liabilities of $509,274.66 from his total assets of $566,712.69 results in a total net worth of $57,438.03 for the 2023 taxation year.

15The Applicant did not testify to any other financial liabilities or assets.

16The City did not take a position on whether the Applicant was unable to pay the property taxes, as the City has delegated its authority of that decision to the Board.

Findings on Issue 1- Ability to Pay

17The Board notes that the monthly income as reported, is approximately $884.81, less than the monthly expenses incurred by the Applicant in 2023. First, this figure is after accepting the Applicant’s oral testimony with respect to his expenses and debts in the absence of documentary evidence. Second, this monthly income shortage is after paying his monthly mortgage of $1,899.81, financing a new car with the value of approximately $23,000 with monthly payment and insurance of $443.85, purchasing a new mobile telephone and laptop, numerous purchases through the Internet, for which he was unable to explain, a monthly membership in a Good Life Fitness Club and owning land in Mexico (no documentary evidence was filed), considering that the 2023 property taxes of the Applicant is $2,407.77 ($200.67 per month). The Board also notes there are many unexplained transfers and deposits in the Applicant’s checking account.

18The Board has widely held that property taxes must hold a place of priority with respect to the money spent by a household over the course of a given taxation year. The Board has also held that to determine if the Applicant is able to pay taxes, those payments are to be made once all costs associated with the reasonable necessities of life are covered.

19In the opinion of the Board, not only did the Applicant not cut from the necessities of life but was able to maintain his life as he wanted to. This indicates to the Board that the Applicant is not in a negative situation when it comes to poverty.

20In 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 tax.

21M. 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 he was able to do so.

Issue 2 - Was the reason for the Applicant’s inability to pay the taxes in 2023 as a result of either sickness or extreme poverty?

22The Applicant did not base his inability to pay the 2023 taxes on sickness. Therefore, no evidence was adduced in this respect.

Findings on Issue 2

23Having decided that the Applicant was able to pay the property taxes in 2023 and indeed he did, the Board has no reason to consider whether the Applicant was in a condition of sickness or extreme poverty.

24The Board finds therefore that the Applicant has failed to demonstrate that he was unable to pay the property taxes levied in 2023.

ORDER

25The Board orders that the application for reduction, cancellation or refund of the 2023 property taxes is dismissed.