Searching for Wrongful Homesteaders

To some, the advantages of qualifying for a homestead exemption is so attractive they figure they should have the savings on more than one home. The fact is that this breaks the law. Many Property Appraiser across the state have stepped up investigations into fraudulent filings. The homestead exemption reduces the taxable value of a property by $25,000.

Property appraiser's offices uses several methods to verify exemption status, the most effective tool is talking to a homeowner's neighbors. Also, once a year, the appraiser's office mails cards to residents with exemptions asking if they still qualify for the $25,000 "savings. If the mailing address is invalid and the card is returned it triggers an inquiry.

Property appraisers are also calling to other counties and states to see if a person who owns more than one home already has a homestead exemption.

State lawmakers do not want to be lenient on such errors, intentional or not. Currently there is legislation that has been proposed that would make it a felony to claim more than one homestead exemption. The offense is a third-degree misdemeanor. The property appraiser can recoup taxes on nonqualified homesteaded property dating back 10 years. There is a 50-percent penalty on the overdue taxes, plus 18-percent interest. The property appraiser also puts a lien on the property until the debt is paid. A second proposed bill would allow a married but separated couple to file separate homestead exemptions if both are paying their own bills.

Posted by Donald Urschalitz P.A. at October 14, 2005 04:15 PM