Cheap loans?

But of the 22,000 or so parcels that are delinquent each year, only 450 actually go to tax sale after five years, Richardson said. Owners find ways to come up with money before then.

In other states

Research by the Deseret Morning News found that penalties and interest vary greatly among the states, but Utah is on the less-expensive end of the spectrum.

At least 37 states allow charging higher interest rates than Utah does for taxes that were due in 2004. Interest rates allowed ranged up to 36 percent in Illinois.

Penalties of 5 percent to 10 percent also are common. However, many states do not impose penalties but tend to charge much higher interest rates.

"The 2 percent penalty charged by Utah is low," Richardson notes. "Many states are a lot higher. California, for example, charges 10 percent. I would like to see our penalty higher."

The time that states allow before delinquent properties are sold at a tax sale also varies between one and five years among the states. No state gives more than the five years allowed in Utah, but 31 set shorter time frames.

The Morning News found that Salt Lake County has yet to sell 269 parcels that have been delinquent longer than the allowed five years — some with taxes overdue for 20 years. Richardson said some of that property is tied up in bankruptcy; some is contaminated and cannot be sold; some had owners who could not be found for required notification; and some had taxes deferred on long-term payment plans for the truly needy. Taxes delinquent on all such property amounted to $2.3 million.

Thirty-eight states use a system that ensures governments receive their money much faster than waiting years for a tax sale. They allow auctioning "tax certificates" within months after delinquencies.

For the cost of back taxes and penalties, private investors buy those notes and are promised a certain interest rate. Property owners must pay off those certificates plus interest within a certain time — usually one to four years — to prevent losing their property to the certificate holder.

Auctions for the tax certificates are held in ways that try to keep interest rates low for delinquent owners. For example, in Florida, bidding starts at 18 percent for certificates — and goes downward toward 0 percent. The winning bidder is the one willing to accept the lowest interest rate from the delinquent owner.

Bennett's example

Only three of the more than 200 elected officials in Salt Lake County faced the embarrassment of being delinquent with 2004 property taxes, which were due Nov. 30. Their stories help illustrate various reasons for being late.