The City of Hamilton claims it cannot attend some Assessment Review Board (ARB) hearings, citing “the volume of appeals.”
In a written statement last week, General Manager of Finance and Corporate Services Mike Zegarac wrote, “the City participates in approximately 60-70 assessment appeals per year.”
In fact, there were only 24 assessment appeal hearings in 2023, 16 in 2022, and 23 in 2021, stated Tribunals Ontario in response to a question from this reporter.
Following the publication of this story, the City explained it includes appeals that are dropped or settled.
“To clarify, the City actively participates in approximately 60-70 appeals per year. By actively participating, the City takes a formal position in response to the appeal and acts in accordance with the timelines as outlined in the schedule of events for each appeal, as set out by the Assessment Review Board,” wrote the City’s Director of Finance Planning Administration and Policy Brian McMullen.
“The City’s active participation has resulted in some appeals being withdrawn or settled before a full hearing. Though there may not have been a hearing, the City actively participated in the appeal process and therefore the numbers provided (approximately 60-70 assessment appeals) reflect those we participate in annually.”
The City’s figures did not include how many appeals it did not participate in.
City Failed to Show at ARB, Losing Thousands in Tax Revenue
TPR reported last week that the City of Hamilton forfeited thousands of dollars in industrial property tax revenue when it failed to attend an ARB hearing in May, forfeiting the ability to enter evidence.
The owners of 68 Trinity Church Road in the Red Hill Business Park district won a declaration their lands are “permanently unusable” giving them a 90 percent decrease in their industrial property taxes.
The City is spending tens of millions of dollars to upgrade municipal services to the business park area, including constructing two road extensions that will service the property at 68 Trinity Church Road.
Because the City did not participate, the ARB was not made aware of the servicing upgrades to the property – upgrades that will significantly increase the value of the land.
Tax Loss Unknown due to Cybersecurity Failure
The exact amount of lost annual tax revenue is not available due to the City’s February cybersecurity failure.
Section 39 (1) of Ontario’s Assessment Act requires the City of Hamilton to allow the “inspection” of tax rolls. However, the City states it cannot provide the tax roll at this time.
Background: Friday, July 5, 2024, Full Q&A on 68 Trinity Church Road.
At 8:00 a.m., the following email was sent to the City of Hamilton with the subject line “12:00noon deadline – Questions on City failure to show at ARB”
The text read:
The City of Hamilton failed to attend an Assessment Review Board appeal of tax assessment at 68 Trinity Church Road.
https://www.canlii.org/en/on/onarb/doc/2024/2024canlii60439/2024canlii60439.html
The lands in the Red Hill Business Park have been deemed “permanently unusable” because the City did not enter any evidence.
The result is a loss of 90% of tax revenue for the lands.
Questions:
1) Why did the City decide to not attend the hearing?
2) Why did the City decide to not enter evidence of the plans to extend the Upper Red Hill and Twenty Road?
3) Did the schedule for the hearing, or notice, get lost due to the City’s ongoing cybersecurity failure?
4) Will staff provide a report to Council outlining the amount of tax revenue being lost by this decision?
The City responded requesting time to provide answers.
At 2:00 p.m., the City response:
1, Why did the City decide to not attend the hearing?
Staff recognize the need to participate in appeals; however, due to the volume of appeals, there is a process in which appeals are prioritized. The staff recommended, and Council approved, Criteria for Participation in Appeals framework strikes a balance between resources and potential municipal property tax loss. The City participates in approximately 60-70 assessment appeals per year.
2. Why did the City decide to not enter evidence of the plans to extend the Upper Red Hill and Twenty Road?
City staff applied the Criteria for Participation in Appeals framework, and knowing that MPAC would be participating in defending their assessment, made the decision not to participate.
3. Did the schedule for the hearing, or notice, get lost due to the City’s ongoing cybersecurity failure?
No. Staff were in receipt of the Statement of Issues in December 2023, and having applied the Criteria for Participation in Appeals framework, and knowing that MPAC would be participating in defending their assessment, staff decided the City would not participate.
4. Will staff provide a report to Council outlining the amount of tax revenue being lost by this decision?
Staff report to Committee and Council through an Annual Assessment Appeals as of December 31 (prior year)
Background: Email Question and Answer with Tribunals Ontario
The following is the question sent to the media relations officer for Tribunals Ontario, which the ARB is part of.
“I am looking to determine the annual number of ARB hearings for 2021, 2022, and 2023 involving properties within the City of Hamilton.
There are ten ARB rulings posted to CanLII for 2023, and 19 for 2022.
Are you able to provide the number of hearings each year for 2021, 22, and 23?”
The response:
Please see below a chart setting out the number of hearings held at the Assessment Review Board (ARB) involving properties within the City of Hamilton from January 1, 2021, to December 31, 2023.
Hearings held involving properties within the City of Hamilton 2021 23 2022 16 2023 24
Production Details v. 1.1.0 Published: July 12, 2024 Last updated: July 13, 2024 Author: Joey Coleman Update Record v. 1.0.0 original version v. 1.1.0 added City of Hamilton comment