Tribunals Ontario
Assessment Review Board
ISSUE DATE: January 30, 2024
Assessed Person(s): E.L.
Applicant(s): E.L.
Respondent(s): City of Toronto
Property Location(s): Address Withheld
Municipality(ies): City of Toronto
Roll Number(s): Roll Number Withheld
Appeal Number(s): 3518797
Taxation Year(s): 2022
Hearing Event No.: 783068
Legislative Authority: Section 323(1)(e) of the City of Toronto Act, 2006, S.O. 2006, c. 11, Sched. A
APPEARANCES:
| Parties | Counsel*/Representative |
|---|---|
| E.L. | Self-represented |
| City of Toronto | Amy Tieu*; Barry Henaut |
HEARD: January 25, 2024, by telephone conference call
ADJUDICATOR(S): Margarita Okhovati, Member
DECISION
OVERVIEW
1E.L. (the “Applicant”) filed an application with the City of Toronto (the “City”) to have her 2022 property taxes cancelled, reduced or refunded because she was unable to pay, due either to sickness or extreme poverty, under Section 323(1)(e) of the City of Toronto Act, 2006, S.O. 2006, c. 11, Sched. A.
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 52 year old single woman who lived on her own in the subject property in 2022. The subject property is a semi-detached house with three bedrooms and two bathrooms with a semi finished basement. She testified that in 2022 she did not work and her income in 2022 was from receiving disability.
Issues for the Hearing
4The issue in this proceeding is whether the Applicant’s 2022 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 2022 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 2022 to be cancelled, reduced or refunded.
Result
5Based on the evidence before it, the Board finds that the Applicant has failed to demonstrate that she was unable to pay the property taxes levied in 2022. Therefore, the Board dismisses this application.
ANALYSIS
Issue 1 – Was the Applicant unable to pay the property taxes levied in 2022?
6The Applicant submitted copies of seven bank account statements. In 2022, the Applicant’s monthly income, based on the Financial Information Form and her oral testimony was $1,143.94, which consists of disability payment of $727.27 and from the sale of her car in 2022 for $5,000 ($416.67 per month).
7Average monthly expenses of the Applicant incurred in 2022 were approximately $1,261.41 and are summarized as follows:
EXPENSES Mortgage: $0 Property tax: $189.47 Home insurance: $140.58 Water: $37.00 Heat: $55.83 Hydro: $47.50 Internet: $44.23 Cell phone: $50.85 Groceries: $170.00 House supplies and medication: $90.00 Clothing: $20.00 Transit: $25.00 Safety deposit box rental: $61.20 Water heater rental: $38.75 Storage rental: $234.17 Lottery tickets and small items: $19.83 Eavestrough cleaning and snow removal: $37.00
NET TOTAL Income Total: $1,143.94 Expenses Total: $1,261.41 Net Total: -$117.47
8The Municipal Property Assessment Corporation’s (“MPAC”) estimated value of the subject property for the 2022 taxation year is $820,000. The City submitted that in 2022, the average price of similar properties sold in the vicinity of the subject property was $1,275,000. The Applicant confirmed this figure by stating that the next-door house was sold for the same price.
9The following tables detail the Applicant’s assets and liabilities in 2022.
ASSETS Subject property: $1,275,000 Checking Account: $7,422.32 Assets Total: $1,282,422.32
LIABILITIES Mortgage owing: $0 Credit cards and line of credits balance: $47,740.23 Liabilities Total: $47,740.23
10Subtracting the Applicant’s total liabilities of $47,740.23 from her total assets of $1,282,422.32 results in a total net worth of $1,234,682.09 for the 2022 taxation year.
11The City’s position is to dismiss the application because in 2022, the Applicant was able to pay her property taxes.
12The City testified that the property taxes levied in 2022 totalled $5,181.85. The Applicant paid $1,137.62 and $171.54 was reduced by the City for the disability of the Applicant. Therefore, the balance of the 2022 taxes is $3,872.69.
Findings on Issue 1- Ability to Pay
13The Board notes that the monthly income as reported, is approximately $117.47 less than the monthly expenses however, the Applicant had $7,422.32 in her checking accounts. This amount would have been more than sufficient to pay her property taxes, which is $322.72 per month. In addition, the Applicant had a total of $22,221.33 credit available to her in her credit cards and line of credits, which would have assisted her again to pay the property taxes. Furthermore, the Board notes that the Applicant did not use her discretion in incurring all the expenses like, continuously paying $2,810.04 per year since 2014 for a storage to store her household items after a renovation was done in the subject property in 2014, renting a safety deposit box for $ 734.00 and purchasing lottery tickets and small items for $237.96.
14Moreover, the Board notes that there are several deposits and withdrawals in the Applicant’s checking accounts for which the Applicant did not offer any explanation for most of them.
15In 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 taxes.
16M.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 she was able to draw on her own resources as a means of meeting her financial obligations throughout 2022.
17The Board finds therefore that the Applicant has failed to demonstrate that she was unable to pay the property taxes levied in 2022.
18Having decided that the Applicant was able to pay the property taxes in 2022, the Board has no reason to consider whether the Applicant was in a condition of sickness or extreme poverty.
ORDER
19The Board orders that the application for reduction, cancellation or refund of the 2022 property taxes is dismissed.
"Margarita Okhovati"
MARGARITA OKHOVATI MEMBER Assessment Review Board Website: www.tribunalsontario.ca/arb