However, he said, local governments usually receive all of the tax and penalties due, eventually. "The county is a secured party in the bankruptcy process. Most Utah bankruptcies are Chapter 13 bankruptcies, which result in a court-adopted payment plan providing for payment in full of all delinquent taxes, penalties and interest," Richardson said.

But, he adds, "Rarely, a settlement for less than the tax due is ordered by the bankruptcy court in Chapter 7 bankruptcies."

Some large debtors in bankruptcy include South Mountain development, which owes $395,357; MCI Telecommunications, $356,920; and Cricket Communications, $256,113.

Tough times tactic

Sandy City Council member Scott L. Cowdell is like many residents who are late because of some minor financial difficulty but quickly pay when possible.

He was late on $444 of the $1,752 he owed in 2004 property taxes. "I have paid it now," he said.

"The (payment) deadline just crept up on us," and he missed paying all that was due because of some minor cash-flow problems with other bills, he said. "We knew we wouldn't have the whole amount in, so we paid what we could."

Richardson said that is common. "About 95 or 96 percent of residents pay on time," he said.

Among those who do not, most pay fairly quickly afterward.

For example, just over $34 million in 2004 tax was delinquent at the payment deadline on Nov. 30. Since then, more than $14 million of it has been paid, Richardson said.

"We generally experience excellent delinquent tax collection in the first quarter of each year and lesser amounts in later months," Richardson said.

He added that when he became treasurer, he decided to send bills three times a year to delinquent owners. He said he found that worked wonders and increased collections.

"Most people just needed the reminder," he said.

As of Jan. 31, 79 percent of 2003 delinquent taxes had been collected, 90 percent of 2002 delinquent taxes, 93 percent of 2001 delinquent taxes, and 98 percent of 2000 delinquent taxes, which were facing tax sales in May if not paid.

If businesses seek easy "loans" through delayed payment of taxes, relatively few end up losing property at tax sale. Of the 794 parcels that still face possible tax sale this year, Richardson said, "I expect to see no more than 450 parcels still unpaid."

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E-mail: lee@desnews.com