Somewhat similarly, banks and mortgage companies often delay property tax payment on foreclosed properties — and accounted for about 2 percent of all delinquent taxes in the three counties. And commercial property companies, such as owners of shopping centers or apartments, accounted for about 3 percent of delinquencies. Other businesses — including many known to be in financial distress — accounted for 16 percent of all delinquencies. Homeowners accounted for the other 50 percent of unpaid tax.

Treasurers from the three counties say delinquencies — which amounted to a combined $86.7 million in late 2008 property taxes — don't hurt local governments too much as they budget assuming some of it will happen, as long as delinquency rates do not increase vastly.

"It hasn't caused any problem for public entities, and it gives property owners a good amount of time to work out their nonpayment," said Salt Lake County Treasurer Larry W. Richardson. "As long as we have a good collection ratio overall, it doesn't have a significant impact on what municipalities, counties and school districts have."

Davis County Treasurer Mark Altom said some delinquencies may actually financially benefit counties because they earn higher interest than counties could obtain elsewhere. He said the state's Public Treasurer Investment Fund was earning about 2.77 interest in November, which is much lower than the 6.25 percent that counties will earn on delinquent 2008 property taxes.

The three country treasurers also say the current penalties and payback time are probably sufficiently balanced between the needs of helping truly needy taxpayers, and not encouraging more nonpayment for those seeking "cheap loans."

Kirk said a 6.25 percent interest rate may not seem like a big penalty to some businesses that might not be able to obtain other loans so cheaply, but it is a big penalty to some struggling families.

"There are some people who are really struggling. I don't think I could sleep at night if it were 11 percent" as the penalty interest, Kirk said. "I guess I got a tender heart, but not for developers — don't get me wrong. But for some of these people, they are struggling."

The Legislature also has shown virtually no interest in recent years in changing mandated interest rates or payback periods despite repeated stories showing that many companies, especially developers, are using them as cheap loans.