Auditor flags widespread ineligible homestead deductions; office seeks dedicated staff to recover lost revenue

Lake County’s auditor told commissioners the office has uncovered a recurring problem with ineligible homestead deductions and is proposing to reassign an experienced staff member to the task, funded in part through a supplemental pay arrangement.

The auditor’s office said some taxpayers appear to have multiple claimed homesteads or have not timely removed homestead status after moving or when an owner dies. Officials described efforts to identify and notify affected property owners and cited cases where the county could reclaim taxes for several prior years when eligibility is corrected. County staff said past efforts had reduced the problem but that the issue had resurfaced and required more sustained attention.

Auditor staff identified an employee, Leslie, who previously worked on homestead eligibility and who they say produced strong results. Staff proposed returning the position and supplementing the employee’s pay from a special fund tied to recovered revenue. Officials described the supplemental fund as fee‑based and said the supplemental pay would not necessarily come from the general fund.

Commissioners expressed concern about prior management of the program, asked whether a prior contractor or contingency arrangement had existed, and sought concrete data on amount recovered historically. Several commissioners said departments should provide the board with background and financial data before new pay arrangements are approved. One commissioner said he would move to defer action to the board’s next meeting to allow staff to gather more information.

No formal approval or vote to create or fund a permanent position appears in the transcript; the matter was set for further review and staff were asked to return with historical recovery figures and clarification about fund sources.