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Philadelphia’s Controller Office has issued a report that determined that fraud within the city’s Homestead Exemption Program, costs the municipal government and schools roughly $11.5 million per year.

According to MetroPhiladelphia.com coverage, investigators with the controller’s office used data-mining tools and municipal records to identify 23,000 properties that were incorrectly part of the program, which is meant for owner-occupied homes. The controller’s report found property owners with mailing addresses outside of Philadelphia – including some as distant as California, are receiving the deduction. Businesses and landlords are receiving the tax benefit, and in some case the same person is receiving for multiple exemptions.

More than half (56%) of the real estate tax revenues from the program fund the School District of Philadelphia, and the controller’s office estimated the education system loses about $6.4 million annually from the fraud, which costs the municipal government about $5 million.

“Our school district and city cannot afford to lose millions of dollars that are essential for funding vital services,” said Controller Christy Brady at a news conference. “That is why it is crucial the city prevents ineligible property owners from claiming a Homestead Exemption.”