HomeMy WebLinkAboutFIN-2025-451 - Section 357(1) (d.1) Application for Sickness of Extreme PovertyStaff Report
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Financial Services Department www.kitchener.ca
REPORT TO: Planning and Strategic Initiatives Committee
DATE OF MEETING: December 1, 2025
SUBMITTED BY: Saleh Saleh, Director, Revenue Division, 519-904-6308
PREPARED BY: Faye West, Manager, Taxation & Payment Processing, 519-783-8022
WARD(S) INVOLVED: ALL
DATE OF REPORT: November 18, 2025
REPORT NO.: FIN -2025-451
SUBJECT: Section 357(1) (d.1) Application for Sickness or Extreme Poverty
RECOMMENDATION:
That the draft by-law attached to report FIN -2025-451 as Appendix "A" to delegate
authority to the Assessment Review Board for determining the eligibility for property tax
relief for applications received under Section 357(1)(d.1) of the Municipal Act, 2001 be
approved; and,
That staff forward a certified copy of the by-law to the Registrar of the Assessment Review
Board and the Municipal Property Assessment Corporation, as required under Section
357(12) of the Municipal Act, 2001 and thereafter forward a copy of every application
received to which this by-law applies.
REPORT HIGHLIGHTS:
• The purpose of this report is to request that Council adopt a By-law (Appendix "A") to
delegate authority to the Assessment Review Board (ARB) to determine eligibility for
property tax relief for applications received under S357(1)(d.1) of the Municipal Act, 2001.
• Applications received under S357 (1) (d.1) where the applicant is unable to pay taxes
because of sickness or extreme poverty are difficult to evaluate as it requires a thorough
review of the applicants financial and medical condition.
• Several municipalities across the Province have delegated decision-making authority to the
ARB for determining the eligibility for property tax relief for applications received under
Section 357(1)(d.1).
• This report supports Stewarding a Better City Together: Focuses on City employees as
stewards of Kitchener; responsive, innovative, diverse & accountable public servants
working together to serve residents; removing barriers and championing a better city
and a better world.
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BACKGROUND:
Section 357(1) of the Municipal Act, 2001 allows property owners or eligible applicants to apply
for the cancellation, reduction, or refund of property taxes for various reasons. Subsection (d.1)
specifically addresses cases involving sickness or extreme poverty.
Section 357(11) of the Municipal Act, 2001 permits Council to pass a by-law authorizing the
Assessment Review Board (ARB) to exercise the power and function of Council with respect to
applications made under subsections 357(1) (d.1).
In 2025, the City received 7 applications for relief under this section. No applications were
approved for a property tax adjustment.
REPORT:
Section 357 (1) (d.1) has not been used extensively in the past due to the difficulty in proving
the criteria has been met. The Municipal Act does not provide a clear definition of what type of
illness would be severe enough to qualify for a tax reduction or what constitutes extreme poverty.
Property owners who apply for relief under this section are required to demonstrate that they
lack the financial capacity to pay their property taxes. Further, to support their application, they
are required to submit documentation such as bank statements, a Notice of Assessment from
the Canada Revenue Agency, and/or medical evidence of illness. The current process includes
City staff reviewing the submitted materials to determine eligibility. However, applications for
relief under this section of the legislation are difficult to assess as it involves a thorough
evaluation of both the financial and/or medical circumstances of the property owner.
To ensure consistency, fairness, efficiency, and the application of specialized expertise, many
municipalities across Ontario have chosen to delegate this decision-making authority to the ARB.
As shown in the table below, a survey of municipalities across the Province shows that several
municipalities have passed similar by-laws to support this delegation.
Municipality
Delegation to ARB By-law passed Yes/No
City of Toronto
Yes
City of Mississauga
Yes
City of Guelph
Yes
City of Waterloo
No
City of London
Yes
City of Cambridge
No
Town of Oakville
Yes
City of Ottawa
Yes
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STRATEGIC PLAN ALIGNMENT:
This report supports Stewarding a Better City Together: Focuses on City employees as
stewards of Kitchener; responsive, innovative, diverse & accountable public servants
working together to serve residents; removing barriers and championing a better city and
a better world.
FINANCIAL IMPLICATIONS:
If an application is approved through the ARB, it is expected to have a minimal impact on the
City's operating budget.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of the
council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
• Municipal Act, 2001
• Assessment Act
• FIN -2024-190- Delegated Authority for Property Tax Adjustments
APPROVED BY: Jonathan Lautenbach, CFO, General Manager of Financial Services
ATTACHMENTS:
Appendix A — Draft By -Law
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Appendix A -Draft By-law
BY-LAW NUMBER
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(being a by-law to authorize the Assessment Review
Board to exercise certain powers and functions of
Council under Section 357 (1) paragraph (d.1) and (5)
of the Municipal Act, 2001, as amended)
WHEREAS subsection 357(1), paragraph (d.1) of the Municipal Act, 2001, as
amended, authorizes applications to be made by any person to the council of a municipality for the
cancellation, reduction or refund of taxes levied in the year in respect of which the application is
made where such person is unable to pay taxes because of sickness or extreme poverty;
AND WHEREAS subsection 357(11) of the Municipal Act, 2001, as amended,
authorizes the council of a municipality to pass a by-law to authorize the Assessment Review
Board to exercise the powers and functions of council under subsections 357(1) and (5) with
respect to applications under subsection 357 (1) of the Municipal Act, 2001, as amended;
AND WHEREAS any such by-law passed by the Council of the municipality shall apply to
applications made in and after the year in which such by-law is passed and shall continue to apply
until repealed;
NOW THEREFORE the Council of The Corporation of the City of Kitchener
enacts as follows:
1. That the Assessment Review Board shall exercise the powers and functions of the Council
of The Corporation of the City of Kitchener pursuant to subsections 357 (1) and (5) of the
Municipal Act, 2001, as amended, with respect to all applications under subsection 357(1)
paragraph (d.1) of the Municipal Act, 2001, as amended, made during the current year and
in each year hereafter until this by-law is repealed for the cancellation, reduction or refund
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of taxes levied in the year in respect of which the application is made by any persons who
are unable to pay taxes because of sickness or extreme poverty.
2. That this By-law shall come into force and effect on the date of its final passing.
PASSED at the Council Chambers of the City of Kitchener this 15th day of December 2025
Mayor
Clerk
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