Tribunals Ontario
Tribunaux décisionnels Ontario
Assessment Review Board
Commission de révision de l’évaluation foncière
ISSUE DATE:
September 11, 2025
FILE NO.:
WR 189043
Assessed Person(s):
L.H.C
Appllicant(s):
L.H.C.
Respondent(s):
City of Toronto
Property Location(s):
Address Withheld
Municipality(ies):
City of Toronto
Roll Number(s):
Roll Number Withheld
Appeal Number(s):
3527756
Taxation Year(s):
2024
Hearing Event No.:
788102
Legislative Authority:
Section 323(1)(e) of the City of Toronto Act, 2006, S.O. 2006, c. 11, Sched. A
APPEARANCES:
Parties
Counsel/Representative
L.H.C.
Self-represented
City of Toronto
Lei Cao
HEARD:
July 2, 2025 by video conference
ADJUDICATOR(S):
Anita Lovrich, Member
DECISION
OVERVIEW
1L.H.C. (the “Applicant”) filed an application with the City of Toronto (the “City”) to have his 2024 property taxes cancelled, reduced or refunded because he was unable to pay due to either sickness or extreme poverty, pursuant to section 323(1)(e) of the City of Toronto Act, 2006, S.O. 2006, c. 11, Sched. A (the “Act”).
2The City has passed a by-law, delegating its authority to determine such applications to the Assessment Review Board (the “Board”) under s. 323(1)(e) of the Act.
Issues for the Hearing
3At issue in this proceeding is whether the Applicant’s 2024 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:
Was the Applicant living in a condition of extreme poverty in 2024?
If the answer to Issue 1 is yes, was he unable to pay his property taxes for the 2024 taxation year because of either sickness or extreme poverty?
If the answer to Issue 2 is also yes, what amount of property taxes should 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 2024. The application is dismissed.
ANALYSIS
Property Tax Balance
5It was not disputed that the property taxes levied on the Applicant’s home for the 2024 taxation year was $2,589.34. The Applicant paid the taxes that were levied in full.
6The Applicant states that he is seeking a reduction in the taxes levied of $120 a month, which totals $1,440.
Issue 1 – Was the Applicant living in a condition of extreme poverty in 2024?
Income
7The Applicant’s position is that the average monthly income is $288, comprised of his investment income.
8The City’s position is that the average monthly income is $1,288.50, comprised of his investment income in addition to transfers from his mother, which he testified were to support him but do not constitute income.
Findings on Issue 1
9Whether the Board finds that the Applicant’s monthly income is $288 a month or $1,288.50, in either case, this level of monthly income is low enough to qualify as being in extreme poverty in 2024.
10The Board therefore finds that Applicant was in a state of extreme poverty in 2024.
Issue 2: If the answer to Issue 1 is yes, was he unable to pay his property taxes for the 2024 taxation year because of either sickness or extreme poverty?
11The City submitted that the application should be dismissed, because the Applicant is not unable to pay his property taxes and in fact did pay them in full. The City argues that the Applicant has no liabilities, and has the following assets of approximately $850,000 which were not disputed:
$638,747 condominium
$25,000 parking lot
$76,296.47 worth of stocks,
$101,642.84 Tax Free Saving Account (“TFSA”)
$8,400 in chequing account
12The City testified that the Applicant also had access to a line of credit of $25,000. It submits that the Applicant must call upon all available financial resources to pay his property taxes.
13The Applicant testified that the condominium he owns has no income-generating potential, as only the parking lot does. He stated that a person’s principal residence should not be considered an asset as it is more like a perpetual bond. He stated that this application has the purpose of allowing homeowners to stay in their homes. He stated that he needs his assets for his retirement as his assets are his only retirement funds. He states that he has a cash flow deficit each month and if this continues he will eventually have to sell his home.
Findings on Issue 2
14In S. C. v Whitby (Town of), 2016 CanLII 11169 (ON ARB) at para. 37 the Board determined that:
37In the Board’s view the threshold for individuals who claim an inability to pay their property taxes because of sickness cannot simply be that the individuals are unable to make ends meet. The individuals must demonstrate that after having called upon every resource available to them and having explored every reasonable opportunity to mitigate their financial stresses, they have no means of being able to pay some or all of their property taxes. In addition, the individuals must demonstrate that they have taken steps and explored every reasonable opportunity to manage their debts and mitigate their financial situation. The Board is of the view that the Act envisages that an individual seeking relief on application under s. 357(1)(d.1) of the Act should clearly demonstrate that for the year under appeal the Applicants had no resources available to meet their obligations to provide for the basic necessities of living and at the same time pay some or all of his/her property taxes.
15Property tax payment is of utmost priority. Section 349(3) of the Act stipulates that taxes are a special lien on a property in priority to every other person except the Crown.
16In considering the broader resources available to the Applicant, including the $101,642.84 in the Applicant’s TFSA which he testified had no restrictions on withdrawal, the Board determines that the Applicant had resources available to him that could be utilized to mitigate his property tax obligations. Given the resources available to the Applicant, the Board finds that the Applicant did not have an inability to pay all or some of his property taxes in 2024 due to extreme poverty or sickness.
17The Board finds therefore, that the Applicant has failed to demonstrate that he was unable to pay the property taxes levied in 2024 because of sickness or extreme poverty.
CONCLUSION
18The Board finds that the Applicant has failed to demonstrate that he was unable to pay his property taxes in the 2024 taxation year in the amount of $2,589.34.
ORDER
19The application is dismissed.