Thursday, October 25, 2012

Push To Crack Down On Tax Cheats Claiming Improper Homestead Exemptions Continues


In Huntington County, Indiana, The Huntington County Tab reports:

  • Property owners in Huntington County have one last chance to keep their homestead exemptions intact. If they don't, they may see their property taxes double in 2013.

    The push is a result of the tough economic times, says Huntington County Auditor Cindy Yeiter, whose office is responsible for making sure that those who claim a homestead exemption on a property are, in fact, using that property as their primary residence.
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  • The "homestead verification form" - a pink piece of paper - was mailed out to property owners along with the tax bills in 2010, 2011 and 2012. It asks them to verify that they do, in fact, live in the property for which they are claiming the deduction.

    Yeiter estimates that of the approximately 8,000 residential properties in Huntington County, about 6,150 people have returned the verification form. That leaves about 1,850 taxpayers who have not yet returned the form and are in danger of losing the deduction.
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  • This is the last time that property owners will receive a homestead verification form. Property owners who are living in the home listed on the form must return the completed form to the auditor's office no later than Dec. 31. Those who do not return the form will lose their homestead exemption, which will double their property tax bill, Yeiter says.

    Yeiter says her office mailed out the 1,850 homestead verification forms on Oct. 1. The forms are printed on pink paper. They are being sent only to property owners that did not return the forms in previous years. Homeowners must return the forms even if their taxes are paid by a mortgage company, Yeiter says.
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  • The verification is required to prevent fraud. The auditor may request proof that a home is the applicant's principal place of residence. If proof is not provided, the owner could be ordered to pay the amount by which property taxes were reduced over the previous three years because of the improper homestead deduction along with a 10 percent penalty.

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