Protests by owners of multi-unit dwellings or apartments over back taxes owed to the county as a result of being in violation of homestead credit have prompted a response by Porter County Auditor Robert Wichlinski.

Granting amnesty, the owners of these residencies have until the end of this year to verify their homestead credit without fines or face paying the back taxes and penalties in next year’s property tax bill.

Letters of notification were sent to the property owners last week. The county hopes to have the corrections made so proper tax collecting can be made from this point on.

“We’re not going to start seeking back pay but with the 2012 pay 2013 (taxes), we’re going to get it right,” Wichlinki said. “Come on in and see us.”

The number of those in question reach into the “hundreds.” resulting in thousands of dollars owed to the county that go at least three years back, Wichlinksi said.

One property owner this week went to the county office asking why he owed $12,000 in back payments.

In the case of multi-unit buildings, an owner can only receive a homestead credit for the unit he or she is primarily residing in rather than the entire building itself. However, many who sign up for the credit wrongfully included the entire space on their homestead deduction claim forms which is a violation.

When the person submits a completed homestead credit that results in violation or the sales disclosure form at the close of ownership, Wichlinski and County Assessor Jon Snyder said it is difficult to determine whether the individual knowingly or unknowingly committed the errors which is why amnesty is being given.

“I don’t know if we could ever find that out,” Snyder said.

Wichlinski said he has made it a priority to go after homestead violations as part of his role in the Total Quality Management plan (TQM). The program has recaptured an estimated $1.52 million for the county from mostly single-family residences that are easier to check. The multi-family unit is a separate component of the effort and has more grey areas.

The county has billed $2.6 million in homestead fraud with $120,000 in penalties that go to the state.

The new homestead credit deduction forms printed on pink sheets of paper have been sent out with this year’s county tax bills. Property owners must have the form completed and dated no later than Dec. 31 this year or face losing their homestead deduction.

The forms first started showing up in the 2010 tax bills when the new tax caps were established.

Wichlinski said he figures roughly 10,000 property owners eligible for the deduction have not responded.

Posted 4/27/2012