Among some of the better-known businesses that were delinquent at year's end were: MCI Telecommunications, $392,601; McDonnell Douglas Corp., $174,275; Wal-Mart (for a store in South Jordan), $167,056; the now-defunct Granite Furniture Co., $65,443; American Airlines, $63,690; and Walgreen Co., $21,234.

Richardson said officials have long noticed that developers and others in the real estate industry account for an especially high percentage of the back taxes owed.

He said the reason is no secret. They often opt to wait until they sell property to pay off the taxes, rather than use out-of-pocket money to pay it now.

In essence, the delayed taxes become relatively low-cost loans. State formulas for 2006 taxes impose a 2 percent penalty on any taxes not paid by Nov. 30. If taxes remain unpaid after Jan. 16, they start accruing interest at 11.25 percent retroactive to Jan. 1. (Rates charged for late 2005 taxes were 10.25 percent and for 2004 they were 8.25 percent).

In comparison, the average credit card interest rate now is 13.33 percent, nearly 2 percentage points higher than rates charged on late taxes.

Higher penalties?

Richardson said that many nearby states have penalties and/or interest that are higher than Utah's.

For example, he said Oregon and Arizona charge 16 percent interest; California charges 1.5 percent interest per month; Colorado charges a 1 percent penalty per month, plus interest of 15 percent for 2005 delinquencies; and counties in Nevada were charging penalties ranging from 4 to 22 percent, plus interest at 10 percent.

Still, officials say no one has clamored to raise penalties and interest for delinquents in Utah.

One reason, as Davis County Treasurer Mark Altom has said, is that current penalties and interest rates actually still give counties a better return than they may earn on ultra-safe investments they are allowed to make by law, which pay just 3 percent to 4 percent interest.

That may help counties as long as not too many taxpayers are tardy. And delinquency rates are usually low. In Salt Lake County this year, for example, 6 percent of the total tax owed was not paid on time. The vast majority of delinquents usually pay within a few months or a year, and only a handful go to tax sale after five years, Richardson said.

Richardson said the only major law change he would like would be to prevent developers from subdividing land on which taxes are delinquent. He said allowing that now causes administrative headaches in trying to properly divide taxes among newly created parcels.

Public officials