From Deseret News archives:
Cheap loans?
For some Utah businesses, failing to pay property taxes helps them make ends meet
Salt Lake County Treasurer Larry W. Richardson says that " 'Borrowing' from local government by not paying property taxes is convenient in that there are no applications, no fees (except for a 2 percent penalty set by Utah code) and no waiting."
It does come with risk, because if taxes are not paid after five years, the government may seize and auction the property to collect amounts due. And tax delinquency is considered poor citizenship depriving the state, county, cities, school districts and other local governments of revenue. And it may raise tax rates for others.
Still, a computer-assisted analysis by the Deseret Morning News shows that taking such risks is common among developers, real estate companies, mortgage companies (holding foreclosed properties) and some businesses that may be in financial trouble and therefore not prime candidates for low-cost loans elsewhere.
At least 443 land developers, real estate companies and construction companies owed more than a combined $5.17 million in back property taxes and penalties (as of Jan. 20). That's about an eighth of all back taxes owed in the county.
At least an additional 84 commercial property companies, such as owners of strip malls or industrial buildings or owners of apartments or senior housing, owed more than a combined $1.72 million.
At least 80 finance companies, including mortgage lenders, banks and credit unions that foreclose on properties, owed more than a combined $395,000.
At least 618 other business ventures owed a combined $7.76 million-plus. Some of the better known businesses include Solitude Ski Resort, Riverton Music, Lewis Brothers Stages, MCI, Cricket and Mesaba Airlines.
Clearly identifiable commercial ventures together account for about a third of the $42.5 million in back property taxes and penalties owed in Salt Lake County as of Jan. 20, with individuals and nonprofit groups accounting for the rest.
Easy cash
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