My neighbor's property taxes are capped because she has an over-65 surviving spouse exemption. So she is paying ~$2k/year in ptax. Without that exemption, the ptax would be ~$5k. To qualify for the exemption, you must occupy the house as your primary residence.
However, I do not believe the person on the ptax rolls lives there because the people I see at the house are the two thirty-something parents and their six kids. Occasionally I see an over-65 woman at the house but she appears to just be visiting. Personally I don't see how 6 kids plus 2 parents plus a grandma could fit in a 3br/2ba 2,200 sq ft house, but maybe.
I suspect that the MIL is letting her daughter and SIL and kids live in the house but keeping it in her name to avoid several thousand dollars in annual property taxes. One exception - if the owner was in a nursing home, and planned to come back to the house at some point, she could maintain her exemption legally.
Is this tax fraud? What would you do?
I am paying the market rate of +$8k in ptax, though I have a larger/more expensive house.
However, I do not believe the person on the ptax rolls lives there because the people I see at the house are the two thirty-something parents and their six kids. Occasionally I see an over-65 woman at the house but she appears to just be visiting. Personally I don't see how 6 kids plus 2 parents plus a grandma could fit in a 3br/2ba 2,200 sq ft house, but maybe.
I suspect that the MIL is letting her daughter and SIL and kids live in the house but keeping it in her name to avoid several thousand dollars in annual property taxes. One exception - if the owner was in a nursing home, and planned to come back to the house at some point, she could maintain her exemption legally.
Is this tax fraud? What would you do?
I am paying the market rate of +$8k in ptax, though I have a larger/more expensive house.