Some big names on past-due lists

Published: Sunday, Jan. 29, 2006 12:32 a.m. MST
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John Jacob is a multimillionaire land developer running for Congress. But delinquency lists showed he owed Utah County $27,094 in unpaid property tax at the beginning of this year.

"As a candidate, frankly I'm flat embarrassed," he said.

But he says he intentionally did not pay that tax because, in part, relatively low interest charged on it helps the cash flow of his business ventures and prevents the need for other loans to pay tax on lots that have yet to produce revenue. (He said he has since paid most of the tax.)

Jacob is not alone among public figures on lists of tax delinquents. The Deseret Morning News found two mayors and 10 members of city councils from Salt Lake, Davis and Utah counties on such lists. It even found three members of the Utah Jazz

Most were surprised to be on the lists and blamed problems by counties, accountants, family members or mix-ups during recent sales for errors that landed them there. One (South Salt Lake City Councilman Poponatui Sitake) is in bankruptcy, which put a stay on tax he owed.

Only one beside Jacob — Saratoga Springs City Council member J. Scott Kahn — acknowledged not paying on purpose. He said he expected to sell two lots before taxes were due on Nov. 30, but sales were delayed. He says he chose to wait for them to close to provide the $2,965 in tax due instead of paying that out of pocket.

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A look at problems that put the public officials on the lists may be examples of what happen to thousands of others each year who may be surprised to find late notices.

Three Utah Jazz members were on the list: Deron Williams, Andrei Kirilenko and Mehmet Okur — and all said they were surprised.

"The Kirilenkos, every other year, had their mortgage company pay their taxes — and expected it to happen that way this year. They are calling to find out what happened and will make sure that it is paid," said Jazz spokeswoman Linda Luchetti.

(Similarly, Spanish Fork City Council member Matt Barber said his bank was supposed to pay the tax on property where he is building a house but did not do so on time. He said it has since been paid.)

Luchetti said Williams with the Jazz had purchased a home shortly before taxes were due. She said he thought the settlement had put in escrow money to pay the tax and would take care of the payment, but it didn't. She said he is making sure it is paid now.

Lehi Mayor Howard H. Johnson and Orem Mayor Jerry C. Washburn both reported similar problems. Johnson said he thought a title company was paying tax for him out of a property closing settlement, but it didn't. Johnson said he was never sent a tax notice on some property that he bought just before taxes were due — and obtained a letter from the Utah County treasurer verifying that.

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