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New Jersey builder DR Horton (click to view their website) will soon be in hot
water with the Pennsylvania Department of Revenue thanks to 5thEstate.com's
investigation into their business practices which show a pattern of transfer tax
evasion! The over 55 community is being built by this 13+ billion-dollar-a-year,
publicly traded company that bills itself as "America's Builder". The
development has been plagued with complaints from homeowners who have pointed
out various code violations and problems on these brand-new $275,000 to $400,000
homes.
So what was the official response to our initial visit to "America's Builder"
on the project off of Harrisburg Pike in East Hempfield? "Project Manager" Tom
Huggins, after consulting via phone with the corporate office, had someone call
the East Hempfield township police rather than answer any questions! Once police
arrived, for this supposed "disturbance", Huggins then lied to the police! It's
a good thing that 5thEstate.com's OFFFICAL OBSERVER vehicle had it's
surveillance camera to capture it all digitally!
When police arrived Ron Harper, Jr telephoned one of the development's
residents and source for the tax evasion information, Gary Stauffer, who arrived
a minute later. While Officer C. Landis of the East Hempfield Township police
acted like a complete gentleman with Ron Harper, Jr,, twenty feet away, Huggins
and his cohorts created a loud disturbance proclaiming that Stauffer had hit him
with his truck!
"HEY OFFICER, OFFICER right here, right now. Come here. He just hit me with
his truck!"
The video shows Huggins' employees not even pausing as they walk by their
screaming boss! Apparently these sauntering employees did not get clued into the
act!
While 5thEstate.com normally provides our readers with all our documentation,
because of the above attempt to intimidate this cooperating homeowner, we are
just going to show one of the four "settlement" sheets that show how DR Horton
is lying on how much they are selling their homes. (Editor's Note to PA Dept. of
Revenue: You will get them all!) It will take investigators with the Department
of Revenue to force DR Horton to reveal all the development's nearly 100
settlement sheets to determine just how many thousands of dollars DR
Horton and the homeowners will owe to East Hempfield Township, Hempfield School
District and the Commonwealth of Pennsylvania.
In January two years ago, 5thEstate.com did a story on someone running for
office that failed to pay the required Pennsylvania Realty Transfer Tax as required by law (click to view
story) Our readers learned that the 2% transfer tax breaks down as follows:
½ to the local municipality, ½ to the local school district and 1% to the
Pennsylvania Department of Revenue. The tax is due on the property as well as
all improvements. DR Horton, gave numbers to the settlement company that only
represented the base price of the house. After examining the buyer's settlement
sheets, 5thEstate.com has determined that all upgrades to the homes were NOT
included in the reported selling price. Accordingly, ZERO tax were paid on these
upgrades.
The upgrades for the four sales we examined ranged from $45,000 down to
$9,000 for a total of $108,000 unreported . Until the Department of
Revenue investigates, only DR Horton will know exactly how much they under
reported sales but based on this sampling, it could go as high as $2.7 million
or more for the nearly 100 homes sold.
In the Stauffer sale, taxes were paid on $278,540. With "upgrades" the
Stauffer's actually paid $312, 205 – a difference of $33,965!
Click to see settlement sheet one
Click to see settlement sheet two
Click to see
deed with the taxes paid at the top
Presumably, the Pennsylvania Department of Revenue will view the home buyers
as victims of the out-of-state-big-corporate builder and level all interests and
penalties on DR Horton.
5thEstate.com – where we stand up for the little guy!
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Tom is pictured talking on cell!
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