From Deseret News archives:
Taxes as 'loans': Interest costs low for delinquent firms
Delta had a much easier time obtaining what amounts to a $3.9 million loan from Salt Lake County taxpayers. Approval was automatic. No application was needed. No payments will be required for years. It eventually will cost Delta just a 2 percent initial fee, plus relatively low 10.25 percent annual interest.
How did that happen?
Delta simply did not pay its property tax on time for its facilities at Salt Lake City International Airport.
Delta is one of some 3,600 businesses in Salt Lake, Utah and Davis counties that may have discovered (and used) this trick. Not paying property tax can amount to a cheap "loan" to help ends meet, especially in Utah, where penalties and interest are low. Businesses in the three counties dragged their heels, paying at least $30 million in taxes after their deadlines.
Delta is the biggest property tax debtor in the three counties. By itself the airline accounts for $1 of every $20 in tax not paid on time or owed from previous years.
Several other airlines are among tax debtors. Records show that as of Dec. 21, also-bankrupt Northwest Airlines owed $250,000; American Airlines owed $60,000; Win Air, $481,239; Sunrise Airlines, $73,296; Majestic Airlines, 57,835; defunct PanAm, $15,138; Trans Meridian Airlines, $8,827; and Allegro Airlines, $5,744.
Of course, not paying property tax on time comes with risks. If Utah taxes, penalties and interest are not paid after five years, counties may seize and auction the property of delinquent companies to collect amounts due. And tax delinquency is considered poor citizenship. It deprives school districts, counties, cities and other government entities of expected revenue.
Still, many businesses take such risks. The Morning News found, for example, in the three counties that:
Comments
- Aggies beat Spartans in snowy Logan 4:31 a.m.
- TCU 55, Utah 28 4:24 a.m.
- BYU 24, New Mexico 19 4:21 a.m.
- Jazz game at a glance 3:00 a.m.
- Real Salt Lake: Game at a glance 3:00 a.m.
- Stanford ends Y's soccer season 2:20 a.m.
- Jazz hope D-Will returns soon 2:19 a.m.
- Snow, SUU lose 2:18 a.m.
- Toone saves day for Wildcats 2:15 a.m.
- Win in New Mexico good for Y? 2:15 a.m.
- Apostle's wife felt comfort in attack
- Can BYU root for (ick) Utah Utes?
- Short-handed Jazz fly past Sixers
- D-Will home for daughter
- Utes excited for 'dream' game
- Crash on snowy road kills woman
- Bench proves fruitful for Y.
- BYU happy to escape with victory
- GameDay in Fort Worth
- Born of water and the spirit
- SLC council OKs gay rights policies
358 - Editorial: Mormons and gay rights
200 - BYU happy to escape with victory
194 - Will state consider gay rights law?
148 - TCU creams U.
134 - Can BYU root for (ick) Utah Utes?
130 - Letters: Strange breed in Utah
129 - Utes remain silent about BCS
120 - Pratt pleads not guilty to sex charges
106 - Celtics crush Jazz
104
If you are looking for a bird on the cheap, the following specials from...
How do you handle kids and contests? Our oldest daughter, 7, is of the...
So Great!!! So Proud - Love RSL - Bring Home The CUP!!!!!
mr cannon's bold assertation that the purpose of the first ammendemnt as...
Great great great game!!!! Nicky Rimando is a god! We're the most complete...
I had the game on DVR and just watched it. That was the most exciting game...
financially cannot this year, but I will watch loyally, how great to hear...
This is hardly surprising. Bennett has a remarkable arrogance which is also...
I guess that is why "they play the game" as Herman Edwards would say.. ...
What was the score of the LSU vs LA tech game? Alot closer than you'd like to...
Has Fedor not said that THIS IS OUR YEAR all year long? Go back and...
This is just a small glimpse of the future with Obamacare: corruption, waste...


You can be the first to comment on this story.