The City of New Orleans is conservatively losing out on one and a half million dollars a year, because of people fraudulently claiming their dead people’s homestead exemptions.
That’s according to Interim City Inspector General Edward Michel who spoke at the Special Governmental Affairs Committee meeting Tuesday.
Michel reported some people are inheriting properties from deceased relatives, not reporting that to the state and city, and then still claiming their dead relative’s homestead exemption while not living in the house.
“We looked at 100 properties and out of that 100 properties we found seven properties where the homeowners are probably deceased,” said Michel.
The homestead exemption in Louisiana is $75,000, one of the most generous exemptions in America. Michel said even if the rate isn’t seven percent, and it’s closer to two percent, that’s still a lot of money slipping away.
“Given a rate of an increase of about $4,000 to $6,000 you’re looking at… on the low end about 1.5 million, perhaps,” said Michel.
