Tribunals Ontario

Assessment Review Board

ISSUE DATE: August 22, 2025

FILE NO.: WR 188894

Assessed Person(s): M.F.

Appellant(s): M.F.

Respondent(s): City of Toronto

Property Location(s): Address Withheld

Municipality(ies): City of Toronto

Roll Number(s): Roll Number Withheld

Appeal Number(s): 3527755

Taxation Year(s): 2024

Hearing Event No.: 788118

Legislative Authority: Section 323(1) of the City of Toronto Act, 2006, S.O. 2006, c. 11

APPEARANCES:

Parties	Counsel/Representative
M.F.	Self-represented
City of Toronto	Barry Henaut

HEARD: July 29, 2025 by telephone conference call

ADJUDICATOR(S): Carly Stringer, Vice-Chair Rema EL-Tawil, Member

DECISION

OVERVIEW

The Application

1M.F. (the "Applicant") filed an application with the City of Toronto (the "City") pursuant to s. 323(1) of the City of Toronto Act, 2006, S.O. 2006, c. 11 (the "Act") to have his property taxes for 2024 taxation year cancelled, reduced or refunded because he was unable to pay because of sickness or extreme poverty.

2The City has passed a by-law delegating its authority to determine such applications to the Assessment Review Board (the "Board"). The application was heard by the Board on July 29, 2025. The City appeared at the hearing and took the position that the Applicant was not entitled to cancellation of his taxes, however partial relief may be warranted.

Issues for the Hearing

3At issue in this proceeding is whether the Applicant's 2024 property taxes should be cancelled, reduced, or refunded because he was unable to pay because of sickness or extreme poverty.

Result

4The Board finds that the Applicant failed to demonstrate he was unable to pay his 2024 property taxes because of sickness or extreme poverty. The application is dismissed.

ANALYSIS

Issue – Should the Applicant's 2024 property taxes be cancelled, reduced, or refunded because he was unable to pay because of sickness or extreme poverty?

Applicable Law

5Section 323(1) of the Act states:

323. (1) Upon application to the city treasurer made in accordance with this section, the City 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,

(e) the applicant is unable to pay taxes because of sickness or extreme poverty;

Evidence and Submissions

6The Applicant asked the Board to cancel his taxes because he was unable to pay due to sickness or extreme poverty. The Applicant provided evidence that he was unable to work in his regular employment in 2024 due to a traumatic brain injury and right arm paralysis, among other medical issues following a catastrophic accident in April 2024.

7While the City took the position that the Applicant was not entitled to full cancellation of his 2024 taxes, the City said it took no position should the Board choose to grant partial tax relief to the Applicant. The City provided evidence that it levied $4,885.42 in taxes for 2024, the full amount of which remains unpaid.

8The Applicant testified that he earned an annual income of over $165,000 prior to the accident in 2024. The Applicant provided evidence that the 2024 household income consisted of:

a. $76,728 in taxable income for the Applicant. He testified that this amount reflected employment income and cashing out some of his pension;

b. Roughly $22,000 in Ontario Old Age Security and Canada Pension Plan income for the Applicant's father, who resides with the Applicant and his family;

c. Roughly $18,000 for the Applicant's wife from the child tax credit;

d. Roughly $4,800 per month in disability benefits to the Applicant after his April 2024 accident; and

e. $2,160.98 to the Applicant's father from his deceased wife's legacy pension.

9With respect to assets held by the Applicant, he testified that he has a Locked-in Retirement Account with a balance of approximately $130,000. The Applicant did not provide evidence regarding the value of his home. The City provided evidence that the property would be worth roughly $940,000 if it sold, although the Applicant disagreed with this amount. The property profile from the Municipal Property Assessment Corporation showed an assessed value of $683,000 as of January 1, 2016. The Applicants' mortgage statement reflected a principal balance of $529,453.38 as of December 31, 2024.

10With respect to household expenses, the Applicant provided evidence regarding roughly $7,200 monthly for mortgage payments, hydro, insurance, groceries, household necessities, car expenses, and childcare. The Applicant also incurred monthly costs to pay down debts. The Applicant provided documents showing credit card debt of roughly $20,187.74 in October 2024 and $110,398.82 on a line of credit as of December 9, 2024. The Applicant testified at the hearing that they also owe roughly $10,000 to the Canada Revenue Agency as of April 2024 and $1,000 to family as a personal loan.

Findings

Income

11Based on the evidence provided, including a review of the Applicant's financial disclosure, the Board finds:

a. The Applicant's household income in 2024 was at least $154,000 (rounded) including:

i. $76,728 in taxable income for the Applicant;

ii. $22,000 in Ontario Old Age Security and Canada Pension Plan income for the Applicant's father;

iii. $18,000 for the Applicant's wife from the child tax credit;

iv. Roughly $36,000 in insurance payments; and

v. $2,160 to the Applicant's father from his deceased wife's legacy pension.

b. This income of $154,000 does not capture additional amounts that were referenced at the hearing, including income received from the Applicant selling his guns; from a GoFundMe page dedicated to the Applicant's expenses; and from the Applicant's father selling items on eBay. Despite the Applicant bearing the burden of proof in this application, he failed to provide sufficient evidence substantiating these further amounts.

c. The Board notes that this $154,000 also excludes deposits into the Applicant's accounts in December 2023 and January 2025.

d. The Board finds that the Applicant's unfortunate catastrophic accident did lead to subsequent health issues that constitutes a sickness that caused a reduction in the household income from pre-April 2024 levels.

Non-Discretionary Expenses

12Based on the evidence provided, including a review of the Applicant's financial disclosure, the Board finds as follows:

a. The Applicant provided a chart showing they were paying roughly $8,400 in monthly non-discretionary expenses for 2024, including servicing consumer debt, car insurance, gas, childcare, household items, groceries, mortgage and utilities. This amounts to roughly $100,800 in non-discretionary expenses in 2024.

Income Less Non-Discretionary Expenses

13Taking a conservative view of the Applicant's household income of $154,000 less $100,800 in non-discretionary expenses results in an annual surplus of $53,200.

Whether the Applicant was Unable to Pay Taxes Because of Extreme Poverty or Sickness

14The Board finds that the Applicant's circumstances do not amount to a level of "extreme poverty". The Board finds that the evidence establishes that the Applicant had an annual surplus of at least $50,000, taking into account their household income less non-discretionary expenses. This surplus likely would be higher if the Applicant had actually provided evidence regarding all sources of income, as mentioned in paragraph 11(b) above. This is not a situation of extreme poverty.

15With respect to sickness and the Applicant's health, the Board finds that the Applicant's sickness did have an impact on his income as compared to pre-accident levels. However, the Board finds that the evidence does not establish that the Applicant was unable to pay taxes because of his condition. The Board finds that there remained a significant financial surplus considering the Applicant's household income less non-discretionary expenses – the Applicant had at least a $50,000 surplus remaining for the payment of municipal taxes. As noted in W.W. v Toronto (City), 2024 CanLII 24828 (ON ARB), ("W.W") "[t]his Board has frequently held that when funds are left over, after the necessities of living are accounted for, those funds must be used to pay property taxes": see W.W. decision at paragraph 16.

16The Board has reviewed the financial disclosure provided by the Applicant and notes a significant amount of funds devoted to discretionary expenses spent at vendors of firearms, hunting and tactical gear; cards, comics, and old electronics; ebay purchases; and entertainment. The Board relies on J.O. v Mississauga (City), 2022 CanLII 106836 at paragraph 15:

The Board has widely held that where an Applicant has a shortfall in an ability to pay the taxes levied, consideration must be given to the payment of discretionary expenses. Discretionary expenses cannot take precedence over the payment of property taxes because doing so would require the other residential property taxpayers in Mississauga to cover the shortfall and essentially subsidize the Applicant for these discretionary expenses.

17The Board finds in this instance that the surplus that remained after the Applicant's non-discretionary expenses was covered was enough to pay for the municipal taxes owing and the Applicant was not unable to pay.

CONCLUSION

18For these reasons, the Board finds that the Applicant has failed to demonstrate that they were unable to pay the property taxes levied in 2024 because of sickness or extreme poverty.

ORDER

19The Board orders that this application is dismissed.