Unpaid taxes act as easy loans for many Utah developers
It's an unusual type of real-estate "loan."
No application or screening is required. Acceptance is guaranteed, regardless of amount. The cost is reasonable: a 1 percent fee if paid back in 60 days. After that, another 1.5 percent fee is assessed and interest starts accruing — currently at 7 percent annual interest.
These are the terms set by state law for what counties in Utah charge for late property taxes. And many businesses — especially real-estate developers — are taking advantage of what are essentially easy-to-obtain, short-term loans that are relatively inexpensive.
In fact, the Wasatch Front's 100 largest property tax delinquents in 2016 included 66 developers, according to The Salt Lake Tribune's analysis of tax delinquency lists released last week for Salt Lake, Utah, Davis and Weber counties. The four counties are home to 71 percent of the state's population of 3 million.
"There are developers who use it as a business strategy," said Salt Lake County Treasurer Wayne Cushing, who is in charge of collecting property taxes in his county. "It's cheaper and less of a hassle to borrow it from the county than from a bank."
Read more: http://www.sltrib.com/news/4765056-155/unpaid-taxes-act-as-easy-loans
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