Chicago City Wire

Chicago Teachers Union President Stacy Davis Gates will have to repay taxes she evaded by improperly claiming a homestead deduction on an Indiana home.

While residing in Chicago, Davis Gates and her husband have been claiming a homestead deduction on their property in South Bend, Ind.

The two bedroom, one bathroom home located at 251 N. Sheridan Ave. in South Bend has an estimated value of $75,000.

Davis Gates received a letter from St. Joseph County Auditor John H. Murphy mandating she pay back $1,532.89 in taxes she evadaed over the past three years.

“It has come to our attention that you have been receiving the benefit of the homestead deduction on the above property in error,” Murphy wrote in the letter.

“In accordance with Indiana Code (IC)6-1.1-12-37, the Office of the St. Joseph County Auditor is hereby removing the homestead deduction from this property. As a result of this action, you are now liable for back taxes that were otherwise due for each year an unlawful deduction was claimed (see table below) plus a civil penalty equal to ten (10) per cent of the total delinquent amount.”

Davis Gates will have until Dec. 8 to pay the back taxes and penalty.

“Chicago Teachers Union President @stacydavisgates has lost the homestead deduction on her second home in South Bend, Indiana,” Illinois Policy's Austin Berg said on X.

“She will be forced to pay back nearly $1,400 in property taxes plus a 10% penalty.”

“Though she has been improperly claiming this tax break for more than a decade, Indiana state law only allows auditors to seek three years in back taxes. “

Davis Gates faced scrutiny for claiming the homeowner’s tax break on a property in Indiana while residing in Chicago after public records were discovered indicated that Davis Gates and her husband own the South Bend, Ind. home and benefited from a homestead deduction despite living in Chicago.

The investigation highlights discrepancies in residency statements and raises questions about her commitment to paying a "fair share." Critics argue that these inconsistencies, along with previous controversies, question her integrity and commitment to representing union members' interests.

Those living in Indiana can apply for homestead deductions to reduce property taxes on their primary residence and up to one acre of land.

The standard homestead deduction is either 60% of the property's assessed value or a maximum of $45,000, while the supplemental homestead deduction varies based on the assessed value of the property.