Two landowners in Greater Sudbury may have their 2023 property taxes cancelled after convincing the board of assessment that they were living in poverty.
Ontario’s Assessment Review Board heard the case filed by the two unnamed residents in January and issued a decision earlier this month. Their property is valued at $256,000.
The board has the authority to reduce, refund or cancel property taxes in a given year if landowners can prove they are unable to pay the amount due to sickness or extreme poverty.
“If the board determines they were 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,” said the decision dated Feb. 3.
The two residents showed they had an average monthly income in 2023 of $4,646, drawn from CPP benefits, Old Age Security, GST rebates, climate incentive payments, employment income and other government payments.
Their average monthly expenses amounted to $6,996, including utilities ($1,375), mortgage payments ($780), rent ($1,300), car expenses ($1,009), food and other expenses ($1,191), among other monthly costs.
Had $13,000 in debts
The decision didn’t explain why the residents had both mortgage and rent payments.
“The applicants also explained that in 2023, they had accrued debts of approximately $13,000 that remained unpaid at the end of 2023, including credit card debt, a balance on a structured, consolidated loan and arrears with Ontario Hydro,” the decision said.
“The subject property is assessed at a value of $256,000. There was a mortgage balance of approximately $80,000 at the end of 2023.”
With monthly expenses $2,350 more than their monthly income, the board ruled “that the applicants have demonstrated that they were unable to pay the property taxes in 2023.”
“The board also finds that the reason for their inability to pay was because of extreme poverty,” the decision said.
The next step is for the city to provide details on how much taxes were levied on the property. At that point, the board will decide whether to cancel the tax bill or reduce it.
Read the full decision here.
