The county is granting temporary amnesty to the owners of
hundreds of multi-unit residential buildings, who have been receiving a larger
homestead deduction than is allowed by law.
Rather than exercise his right to go after the violators for three years worth of back taxes, Porter County Auditor Bob Wichlinski said he plans to correct the problem and have the county begin collecting the correct amount of revenue starting next year.
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The violations involve owners, who live in their multi-unit buildings and have been receiving a homestead deduction on their entire structure rather than just the portion that makes up their primary residence, Wichlinski said. The violations have been occurring for many years, he said.
The county has known for a while about this problem, but the size of the situation came to light only recently as the auditor's office has pursued its wider crackdown on homestead violators, Wichlinski said. That effort, which has so far brought in about $1.5 million in back taxes and penalties, has been aimed at the more clear example of single family homes improperly benefiting from the homestead deduction.
Letters were sent out at the end of last week to the owners of the multi-unit buildings, which caused enough of a stir to convince the auditor's office to reconsider the immediate crackdown. The letters sought five years worth of back taxes and a 10 percent penalty.
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