The Lake County Commissioners are holding a public hearing today on a resolution that would require property owners to file a “notice of new construction” with the planning department. The proposed fee is $5 if filed before the project begins, and goes up to $1,000 if filed after construction begins.

As proposed, the resolution would cover “all buildings, structures, fences and improvements,” including mobile homes, manufactured homes, or house trailers that are attached to a foundation.

According to Commissioner Gale Decker, the resolution was proposed after a legislative audit released in December revealed that the Department of Revenue is missing an estimated $300 million a year in new construction value. The audit blames a shortage of staff to conduct annual property inspections, and the reluctance of property owners to notify the department of new construction and risk an increase in taxes.

The resolution, authorizing the Notice of New Construction, was viewed as a means to help the DOR locate and appraise properties in Lake County with new taxable construction, Decker said.

“In hindsight, we probably should have put a dollar threshold that would have eliminated the need for notice of constructing fences, sheds, or other low-dollar projects,” he added. Instead, the focus should be on major construction, such as new houses or shops, that might make a difference to the tax rolls.  

He also noted that by tracking down new taxable construction, the county could hopefully increase property tax revenue, which could, in turn, allow the commissioners to decrease the tax burden on other property owners.

He also said that “only extreme cases, where a significant structure was added to a property and the landowner tried to hide it from the county and DOR, would be targeted for violation” and the $1,000 fine.

The hearing is slated for 2:30 p.m. Thursday in the commission chambers.

“We are going to propose some amendments, listen to public comments, and then decide how to proceed,” Decker said.