Delta is top delinquent

Salt Lake County residents likely have 4.3 million reasons why they might want Delta Air Lines to emerge from bankruptcy — and another 275,000 reasons why they might like to see Northwest Airlines escape it, too.

Maybe then the two bankrupt airlines would pay their past-due local property taxes.

Delta is the biggest property tax delinquent on the Wasatch Front, owing $4.3 million — and accounting for $1 of every $12 in total delinquent tax in Salt Lake, Davis and Utah counties. Northwest is No. 7 on the list, owing $275,005.

Most delinquents in Utah who fail to pay taxes after five years have their property seized and auctioned to pay those taxes. But laws prevent such action against those in bankruptcy.

So until the two airlines emerge from their financial morass, they are enjoying what are essentially low-cost "loans" from the county and its residents. They face interest and penalties that are lower than what many other loans might cost businesses in financial trouble.

And as Salt Lake County Treasurer Larry W. Richardson says, such "loans" are convenient because "there are no applications, no (upfront) fees and no waiting."

A Deseret Morning News review of tax delinquency lists in Salt Lake, Davis and Utah counties show that many businesses — especially developers and others in the real-estate industry — are taking advantage of such "loans." Many appear to avoid paying taxes now with out-of-pocket money by waiting for proceeds from eventual sales of their properties.

The review also found at least a dozen public officials in those counties (from Lt. Gov. Gary Herbert to State Democratic Party Chairman Wayne Holland ) failed to pay their tax bite by the Nov. 30 deadline. Their wide range of reasons likely mirrors the experiences of other residents who were late.

Waiting to pay

Among major findings of the review are:

• Developers, real estate companies and construction companies account for about one-fifth of the total unpaid taxes at the end of the year. They owed a combined $9.6 million of the $50.8 million total in unpaid taxes in the three counties.

• Commercial property companies such as owners of shopping centers, apartment complexes or senior housing owed another $1.2 million.

• Finance companies, including banks and mortgage companies, owed $481,000 on property, apparently often obtained through foreclosures.

• All other types of businesses owed a combined $6.7 million in back taxes in the three counties.