In Case You Missed It: Fred Hubbell Cashes In On Two Tax Credits, Claiming Residency in Two States

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[Des Moines] –  Fred Hubbell improperly claimed thousands in tax credits while claiming to be a resident of Arizona.

Hubbell got tax credits on homes in Iowa, Arizona at same time, records show
Cedar Rapids Gazette
James Lynch

Tax records in Arizona show that Democratic gubernatorial candidate Fred Hubbell received a homeowner tax credit there at the same time he claimed a homestead tax exemption in Iowa.

The Arizona tax benefit likely initially was through no fault of Hubbell’s, according to the Maricopa County assessor. But despite notices from that office, Hubbell didn’t correct classification on his $2 million Scottsdale home from “primary” to “non-primary.” That would have made the house ineligible for a credit that allowed him to pay a lower primary tax rate than other property owners.

“I’m learning new things all of the time (because) I didn’t know it was wrong to begin with,” Hubbell said Friday. “They classified the house. We didn’t.”

That’s correct, according to Maricopa County Assessor Paul Petersen.

“The problem is that we sent him multiple letters saying it was our understanding (his property) was not his primary residence and asked him to give us any information,” he said. “He never responded to any of them.”

Eventually, a civil penalty was assessed.

Tax records in Polk and Maricopa counties show that the retired businessman and his wife, Charlotte, claimed the Iowa Homestead Tax Credit on a Des Moines residence that sold for $650,000 in 2015. At the same time, the Hubbells received an Arizona “State Aid Credit” on a 4,300-square-foot Scottsdale home that estimates is worth $2.8 million. The county Treasurer’s Office shows the Hubbells paid $15,939 in property tax on their Arizona home for 2017.

To qualify for the tax credits in both states, a property owner must live in each home for at least six months of each year. State and county officials in both states concede that’s not something they regularly monitor.

Read the full story online here.