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COTTONWOOD HEIGHTS — One of Utah's most controversial developers, Terry Diehl, also nears the top of a list of delinquent taxpayers in Salt Lake County.
Diehl has been fighting to get a rezone on a luxury housing project at the mouth of Big Cottonwood Canyon. KSL News discovered he hasn't paid property taxes on the Tavaci development, as well as some other properties in the county, since 2008. The total amount he owes the county now exceeds seven figures.
Top 10 delinquent tax payers in Salt Lake County
| Tax payer | Total due |
|---|---|
| 1. Draper Irrigation Co. | $1,759,177 |
| 2. Cottonwood Estates Development | $940,229 |
| 3. Kre Propperties, LLC | $485,021 |
| 4. Midvale Holdings III LC | $412,232 |
| 5. Zions First National Bank | $398,905 |
| 6. Cove at Herriman Springs LLC | $348,769 |
| 7. Highland Development LLC | $337,404 |
| 8. Raging Waters | $316,793 |
| 9. Jordan Hills Villages LLC | $292,185 |
| 10. West Side Property | $272,924 |
During our investigation, we discovered about 95 percent of county taxpayers do pay on time
"It would be helpful to everyone across the board if they'd pay their tax on time," said Randy Wightman, Deputy Salt Lake County Treasurer.
We asked the treasurer for a Top 10 list of property owners who are delinquent paying their taxes. Most of them are developers, like the company behind Diehl's Tavaci project.
The company, Cottonwood Estates Development, owes $940,000 — placing it No. 2 on the list. Add in unpaid taxes on Diehl's Jordan Hills Villages project in West Jordan and his total is roughly $1.2 million.
"I was surprised," said Cottonwood Heights Mayor Kelvyn Cullimore. "I was not aware that was the case."
Taxes from the typical bill go to schools, water, mosquito abatement, police, fire — services all under great budget pressure thanks to the recession.
"Anytime a major property owner doesn't pay their property taxes, obviously it affects the budgets of the taxing entities that are levying a tax," Cullimore said.
It isn't uncommon for land developers to let their property taxes slide. Doing so, in essence becomes a low-interest loan from taxpayers.
"It might actually be considered a sound financial decision in a corporate world," said Salt Lake County Treasurer Wayne Cushing. "As far as being in the government world, where we're counting on those tax dollars being collected, it might be considered an abuse of the system."
Diehl, who is seeking a controversial rezone of the property, declined to comment. Opponents of the project wonder if Diehl is unwilling or unable to pay.
"I think it's an abuse of civic responsibility," said Will McCarvill, a resident of Cottonwood Heights.
"That's just not a civic-minded approach to keeping the lights on at city hall," said Mark Machlis, also a Cottonwood Heights Resident.
A taxpayer has five years to pay off their overdue county taxes. If not payed then, the property goes to a tax sale.
Earlier this year, a news report named Rio Tinto Stadium as the No. 1 delinquent taxpayer in Salt Lake County. Cushing said the next day the stadium's owners dropped off a check for $1.5 million, paying off the entire bill.
The Cottonwood Heights City Council is expected to vote on the controversial rezone proposal Tuesday evening.
Email: jdaley@ksl.com
