Broward

Illegal homestead exemptions

Property-tax cheats facing crackdown

 

Illegal claims are costing Miami-Dade millions of dollars. The county is putting the squeeze on scammers.

Homestead violations

Here are additional details of the four properties highlighted on the front page:

1132 NE 84th St.:

• 5,266 square feet; 6 bedrooms, 4 baths; lot size 45,851 square feet; bayfront; built 1926

• Original 2011 tax (with homestead): $10,984.46

• Revised 2011 tax (without homestead): $35,815.84

• Peak market value (2008): $2,682,813

• 2011 market value: $1,594,700

• Peak assessed value before loss of homestead (2008): $489,554

• 2011 assessed value before loss of homestead: $510,823

• Homestead tax lien: $403,329.70

• Owner: Joseph and Sheron Barnes

13180 Old Cutler Rd.:

• 1,541 square feet; 2 bedrooms, 1.5 baths; lot size 28,314 square feet; built 1948

• Original 2010 tax (with homestead): $3,848.02 (homestead not claimed in 2011)

• Revised 2010 tax (without homestead): $9,537.73

• Peak market value (2007): $885,075

• 2010 market value: $479,506

• Peak assessed value before loss of homestead (2007): $225,278

• 2010 assessed value before loss of homestead: $238,539

• Homestead tax lien: None. Paid: $156,676.85

• Owner: Maria Eugenia Escagedo (also known as Maria Fleites)

8605 SW 56th St.:

• 3,525 square feet; 5 bedrooms, 3.5 baths; lot size 19,440 square feet; lakefront; built 1968

• Original 2011 tax (with homestead): $6,083.90

• Revised 2011 tax (without homestead): $11,020.55

• Peak market value (2007): $755,971

• 2011 market value: $588,821

• Peak assessed value before loss of homestead (2007): $339,027

• 2011 assessed value before loss of homestead: $364,367

• Total homestead tax lien: $114,124.90

• Owner: Estate of Willadean Allen

360 NE 103rd St.:

1,872 square feet; 2 bedrooms, 2 baths; lot size 8,700 square feet; built 1948

• Original 2011 tax (with homestead): $4,362.81

• Revised 2011 tax (without homestead): $5,428.41

• Peak market value (2007): $484,935

• 2011 market value: $214,442

• Peak assessed value before loss of homestead (2007): $334,637

• 2011 assessed value before loss of homestead: $214,442

• Taxes due: $30,058.99 (a lien will be filed if balance is not paid by July 31)

• Owner: Shahriar Bahmani

Source: Miami-Dade County Property Appraiser


Top 10 tabs in 2012

1. 1132 NE 84th Street: $403,329
2.1372 S. Venetian Way: $257,607
3.921 NE 73rd Street: $199,527
4.9999 Collins Ave, PH3H: $185,425
5. 12920 Auralia Road: $169,721
6.13180 Old Cutler Road: $156,676*
7.4610 Alton Road: $130,342
8. 6940 SW 84th Avenue: $123,674
9.1701 SW 32nd Court: $117,515
10.8605 SW 56th Street: $114,124

*Number 6 is paid.


mbrannigan@MiamiHerald.com

For years — decades, really — Miami-Dade homeowners have been ducking property taxes by illegally claiming homestead exemptions, usually with impunity.

There are people like Joseph and Sheron Barnes, who according to county records rented out a house at 1132 NE 84th Street and listed it as their permanent residence.

And there are others like the heirs of Willadean Allen, who records say left the lucrative homestead status on her home at 8605 SW 56th St. for 17 years after she died, chalking up tax savings year after year.

Still others double dipped, like Maria Eugenia Escagedo, also known as Maria Fleites, who records show claimed homestead on 13180 Old Cutler Rd. and on a second home, too.

But these days, gambling on getting caught is a fool’s game.

Homestead-exemption deceit has erupted into a red-hot issue in Miami-Dade and a crackdown is under way with all indications that it will only get tougher for tax cheats to elude detection.

The price of getting caught: Up to 10 years of unpaid back taxes, plus a 50 percent penalty and 15 percent annual interest. The biggest tab this year: $403,329.70 on the Barneses’ property.

Since January, six detectives from the Economic Crimes Bureau of the Miami-Dade Police Department have been working to bolster the muscle of 15 investigators at the Property Appraiser’s Office in nailing violators. That is up from two police detectives deployed in 2011 to tackle a backlog of some 3,500 complaints (now about 2,166) which typically come from tips from neighbors, estranged spouses and others.

This May, Property Appraiser Pedro J. Garcia unveiled a new contract for software and services to flag suspicious claims among the 440,000 homestead properties.

For July alone, the property appraiser, armed with smarter tools, filed $11 million in homestead liens. That compares with $8 million filed for all of 2011.

Fueling the intensified scrutiny: money, of course.

Starved for revenue, interest groups at the county, the school district and cities are clamoring for tougher enforcement of homestead- exemption rules in hope of bringing in revenue to help save public jobs and programs threatened by the budget ax.

At the same time, the new use of data-mining tools to cross-check property records against an array of data from deaths to marriages to voter registrations to auto tags to water bills holds the promise of weeding out suspect exemptions in bulk, generating more and better leads than the hotlines and anonymous tips that have spawned many cases in the past.

The property appraiser’s fledgling foray into high-tech sleuthing came after a retired police major who ran the Economic Crimes Bureau, Jim DiBernardo, began pushing last fall for the county to get proactive against what he asserts are widespread violations costing perhaps hundreds of millions of dollars in lost tax revenue.

In September 2011, the Dade Police Benevolent Association, facing major concessions, trumpeted the need to get tough on tax cheats. The Property Appraiser’s Office disputes the estimates as inflated and said it was exploring data technology before homestead fraud became a hot public issue.

Add to the mix a fiercely contested political race for the office of property appraiser.

Carlos Lopez-Cantera, the 38-year-old majority leader of the Florida House who is at his term limit, is vying to oust Garcia, 74, from the $169,000 a year post in the August 14 election. Lopez-Cantera has painted the incumbent as slow to act on homestead fraud and is pledging to root out violations with proactive tactics such as engaging the cooperation of Realtors and utility companies.

Read more Broward stories from the Miami Herald

Miami Herald

Join the
Discussion

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Miami Herald uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here.

Have a news tip? You can send it anonymously. Click here to send us your tip - or - consider joining the Public Insight Network and become a source for The Miami Herald and el Nuevo Herald.

Hide Comments

This affects comments on all stories.

Cancel OK

  • Videos

  • Quick Job Search

Enter Keyword(s) Enter City Select a State Select a Category