Porter County Judge Pushes Homestead Case Forward

Porter County Judge pushes forward case alleging that Lake County Auditor John Petalas terminated contract with politically connected contractor for improper reason.

April 25, 2018-A Porter County Judge has ruled that a portion of the lawsuit filed on behalf of DSG Lake, LLC, owned by politcally connected contractor David Gilyan, will proceed for now. In the Order below, Judge Jeffrey Clymer ruled that “there is a material issue of fact regarding what limitation or “look back” period applies to the pursuit of claims for improper homestead deductions and . . .there is no material issue of fact that Lake County has no authority to contract with Plaintiff to pursue collection of improper mortgage deductions.

In short, the case will proceed and the Court will hear evidence related to the time period the Auditor should collect improper homestead deductions. Currently, Lake County Auditor John Petalas has stated that three years worth of improper homestead deductions can be collected. DSG Lake, LLC has argued that the Auditor can recover 10 years worth of taxes if an improper homestead exemption is discovered.

The Homestead deduction is the largest deduction which homeowners in Indiana receive and has no limitation. The deduction takes $45,000 off the assessed valuation of a residence and then an additional 35% of the assessed valuation (up to $600,000 and then 25% after that). In the case of a $200,000 residential property, the homestead deduction would be worth nearly $1,000.00 per year.

We hope to get addition pleadings in the case tomorrow and will update this when information becomes available.



  1. The Auditor as an elected official and personally has been dismissed from this case. The suit remains against commissioners but in regards to look back period. Awaiting judges signed order to this effect. Jp

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