Closure of North Ogden Divide

Guest Post by Sally Lindsay   Resident Huntsville

I am concerned about the planned closure of the North Ogden Divide (NOD) beginning June 1^st.

We have three roads in and out of the Ogden Valley. 

1. Ogden Canyon

2. Trapper’s Loop

3. North Ogden Divide 

Avon and Monte Cristo are snow covered and not useful at this time.

Causey reservoir has been full and pouring over the top of the spill way since the 14^th of May.

The real melt has not begun.

The water from Causey Reservoir crosses SR – 39 shortly before the Trapper’s Loop Road.

Pineview Reservoir is 83% full according to KSL May 26^th with over double its entire capacity still in the mountains.

If Causey were to break, a fair section of SR -39 between Huntsville and Trappers Loop would likely be washed out.

This would move all of the Ogden Valley traffic over the Dam, if the NOD were closed.

If water were flowing over Pineview Dam, this road could close  --  and with 200% of capacity yet to fill an 83% full reservoir, and the potential of Causey Dam water crashing into Pineview, this seems like a possibility..

Can the NOD please stay open until later in the summer when we can better access the flood situation?

Property Tax Delinquency and Duration

This has certainly been a pet peeve of the Forum and the Standard jumped on the bandwagon today with this Jesus Lopez Jr. article: 

Property tax delinquency and duration

From the article:

Although the number of delinquent payers is improving, however, the county is seeing a different trend -- people being delinquent for a longer time.
"We are seeing more people that are more delinquent than they were," said Weber County Treasurer John B. Bond.

The article goes on to state:

The overall number of delinquent taxpayers is also relatively low. On average, less than 10 percent of all properties in Davis and Weber counties are delinquent. In good times, however, the number is usually closer to 5 percent.
Yet the dollar amount averages in the millions.
In Weber County, about $11.8 million in taxes were delinquent for 2009. In Davis County, it was about $13.1 million for 2009.
The year before, 2008, saw the highest number of delinquencies in the area.
"That also falls in line with the significant financial challenge that hit at that time," Bond said.
Weber had about $11.4 million in delinquencies in 2008, which was a jump from about $8.3 million the previous year. Davis County more than doubled in 2007 with $15.7 million compared with $7.6 million in 2006.
Of those delinquent, the highest dollar amounts belong to business and real estate developers. The average number of delinquencies is about the same between homeowners and businesses.

Hmmm, are we the only ones confused here?

• In Weber County the delinquencies have increased from $7.8 million in 2006 to over $11 million in 2010.
• Additionally, "...on average, less than 10 percent of all properties in Davis and Weber counties are delinquent. In good times, however, the number is usually closer to 5 percent."
• The total for delinquencies is near the high for the last five years, and there are twice as many delinquent properties than in good times.
• "Of those delinquent, the highest dollar amounts belong to business and real estate developers. The average number of delinquencies is about the same between homeowners and businesses."

Yet, the county continued to allow these same delinquent developers to get further in the hole for years by allowing them to create more subdivisions and get more approvals while the rest of us faithfully paid our taxes.

Another Ogden Valley Planning Commission Has Some Baggage

This is one of two articles today, and we have provided updates to previous posts, so be sure to scroll down for more riveting Ogden Valley news.

The Weber County Commissioners may need to amend their procedure for selecting and appointing Planning Commissioners as it seems as though controversy has surrounded a few of their appointees in recent years.

First, many will remember the purported conflict of interest issue surrounding Ogden Valley Planning Commissioner Jamie Lythgoe and her involvement with Powder Mountain.  More specifically, the involvement of her family.

More recently, Huntsville resident Tryge Simpson just happened to be appointed to serve on the planning commission while a rezone proposal was being petitioned for the Green Valley Academy, a "Residential Treatment Facility."  As luck would have it, Mr. Simpson's home was the site being proposed for the facility, and the property was under a real estate purchase contract with the principals of the proposed Green Valley Academy.  Ultimately, Laura Warburton was selected to replace Tryge Simpson.

And now, thanks to All Star investigative reporter Shanna Francis of the Ogden Valley News, significant issues surrounding Long time Ogden Valley Planning Commissioner Jim Banks have been uncovered.

First, in the 1/1/11 issue of the Ogden Valley News (OVN) we find that Jim Banks was one of nine to receive a Presidential Pardon from President Barack Obama.

Liberty Man Recieves Presidential Pardon

Apparently Banks was charged with illegal possession of government property and was sentenced to two years probation in 1972.

Francis concluded her article with this:

A Presidential Pardon can be granted to individuals who have been convicted of a felony.  When a person is convicted, as Banks was in 1972, they lose their civil liberties - the right to vote, serve on a jury, own a firearm.  This is termed a civil disability.  A pardon restores those rights.

 Also in the 1/1/11 issue of the OVN, another compelling discovery is detailed:

Property Taxes Not Collected on Home Occupied by Ogden Valley Planning Commissioner

This is where the story gets interesting.  We will attempt to paraphrase the situation but suggest that you read the above article in its entirety to fully understand.

Jim Banks sold his home and surrounding property in 2006 to developer Jeff Bell.  22.2 acres total.  Bell received approval from the County for a cluster subdivision, but the plan called for open space for the property encompassing the Banks home.  The Banks home was to be demolished and $583,000 was to be held in an escrow account to ensure that all improvements to the subdivision would be completed.

Ultimately, the bank that held the escrow filed for bankruptcy protection and the FDIC has taken over and will not release the funds for demolition.  As far as the County Assessors office and the County recorders office are concerned, the home and lot do not exist - thus the Banks' pay no taxes on a non-existent property.

Perhaps the Commissioners need to do a simple background check of their applicants for the Planning commission.  While everyone deserves a second chance and 1972 was a long time ago, should one who cannot vote or serve on a jury be able to serve on a planning commission?  Probably not.

Weber County Commission Meeting Tuesday - Summit @ Ski Lake up for Approval

Zogmaister campaign donor/ tax evader Ron Catanzero doesn't waste any time in requesting approval of another phase at Ski Lake

We noticed some interesting items on the Pre Christmas Weber county commission meeting agenda.  The important meeting will be:

Commission Chambers of the Weber Center,
2380 Washington Boulevard, Ogden, Utah,
commencing at 10:00 a.m. on Tuesday, the 21st day of December 2010.

Here is an excerpt from the agenda:

 E. Action Items

2. Request for approval of Phase 11 Summit at Ski Lake.
Presenter: Ron Cantanzaro
3. Request for consideration and/or action on an agreement between Ski Lake Corporation, Mountain Sewer Corporation, and Weber County regarding a time extension for the Chalets at Ski Lake and The Summit at Ski Lake.
Presenter: Sean Wilkinson

Of particular interest is the fact that Mr. Catanzero has a long history of leaving the citizen's of Weber County holding the bag for his financial difficulties.  More interesting is the fact that the County continues to entertain Mr. Catanzero's requests.

Click here to view the delinquent history of one subject parcel - there are many more delinquent properties.  
Ultimately, these delinquent taxes were apparently paid by Celtic Bank following foreclosure of the subject property.

For more, click here to view the 2009 delinquent tax list.  They are listed alphabetically so scroll down to see the many listings for "Catanzero" and "Ski Lake corporation."

It would appear that Ron is anxious to get on the agenda before Commissioner Bischoff retires.  Many will remember the large "Bischoff for County commission" signs plastered on several of Catanzero's properties during Bischoff's last campaign.

Perhaps there are some unpaid favors in store for Mr. Catanzero?

The Rip Off of the Average Utah Taxpayer

If you have been following the Ogden Valley Forum posts on delinquent property taxes, you should be aware of the long term misuse of the property tax collection system in Weber County and other Utah counties.

Simply stated, the current property tax collection process used by Weber County and other Utah counties, has provided a tax loophole for some business and developer property owners who choose to use it to avoid paying their yearly property taxes for up to almost 5 years before sale or foreclosure. During this time period of non payment, they are assessed only a 2% penalty and about 6.5% interest. In effect, this a low cost loan courtesy of the County and State (which really means the rest of the taxpayers).

We, the other taxpayers meanwhile provide the money for the State and County services when we pay our property taxes on time every year.

We have contacted our Weber County Commissioners and after much hand wringing on their part, they have investigated and determined there is currently about $14 million in delinquent and uncollected property taxes in Weber County.

In our discussions and correspondence with the Weber County officials and the Utah State Tax Commission, we have received some vague answers on why this tax loophole exists and varied opinions on whether it is a good thing for Utah taxpayers or not.

We feel the best way to address this issue and in order to clear up the confusion and any inaccurate information, would be to list the questions we are most frequently asked and the answers to those questions.

1. Q: State Representative Gage Froerer is proposing a bill in the State Legislature (HB 418) that may increase the delinquent tax penalty (from 2% to 10%) and interest (from 6.5% to 18%) on delinquent taxes. What would that accomplish?

A: The bill will increase significantly the amount of paid taxes into the County and State coffers as of November 30th of each tax year. This will provide more cash flow for services, education and all property tax funded government applications. Most individuals and corporations that use the current system to defer paying their yearly property taxes will quickly realize it will be very difficult to earn a larger return with other investments. These suggested increases are high but lower rates would encourage the same behavior by delinquent taxpayers in the future when other available investments for their money improved.

2. Q: If they raise the penalties and interest, who will be affected, and what about those small property owners that may be struggling with their property taxes?

A: Any increase in the penalty and interest rate will affect ONLY THE DELINQUENT TAXPAYERS! It will not add to current property taxes, and in the long term, the additional funds collected may reduce your taxes or delay the timeframe for future property tax increases.

For those property owners that appeal their tax bills for various reasons, Weber County and most counties have a Tax Review Committee to consider the appeals, grant extensions, and/or waiver requests on property taxes. This Committee functions in Weber County today and should continue to provide the taxpayers an opportunity to be heard on tax related issues on a case by case basis.

3. Q: I have been told that the current collection law has worked well for the counties, State, and the taxpayers, so why change it?

A: With the astounding amount of uncollected and delinquent money involved statewide (in excess of $100 million) and in Weber County ($14 million), during a time when sales tax revenue is down, cutbacks and layoffs are increasing every day within the counties and State, it is not difficult to conclude that any additional significant revenue would be helpful to all government agencies.

4. Q: Can the Utah County governments also enhance their tax collection methods to help reduce the amount of the delinquent and uncollected taxes within their County?

A: Weber County could require the Assessor's office to review the tax records to identify taxpayers that may be illegally claiming the residential tax exemption on more than one property. Weber County could also expand the subdivision ordinance regarding delinquent taxes to deny any further county assistance to a property owner that owes delinquent taxes on ANY parcel of land in Weber County.

It may be helpful to ask our elected leaders: If the current loophole in the law is really a good deal for the taxpayer and governments as some would have us believe, why haven’t our State and County leaders told EVERYONE to use this tax loophole and defer their property tax payments on November 30th each year instead paying on time?

We should be demanding answers from our County and State leaders on this delinquent tax issue. It is daunting to think of how long this collection procedure has provided this tax loophole for the deliberate delinquent taxpayers, and how much has it has cost the other Utah taxpayers over the years?

In addition, any tax collection system that provides a tax advantage for large property owners and businesses to defer property taxes for almost 5 years while most of the other taxpayers are expected to pay their taxes on time is arbitrary and unacceptable.

The final question may be, what are our elected officials going to do about this inequitable property tax collection law? Our County leaders claim this must be solved at the State level, but we feel our County Commissioners can also assist with additional tax collection methods within the County. The County leadership should also be the most prominent voices in Salt Lake urging the legislature and Governor to take immediate remedial action on this issue by increasing the penalty and interest on delinquent property taxes.

We urge you to contact your state and county representatives to right this obvious wrong. We do have the support of the Utah
Taxpayers Association on this issue.

Larry and Sharon Zini

The Hidden Pain of our Property Tax System.

It has become obvious in recent months that the property tax collection efforts as applied in Weber County have some serious flaws. It has come to our attention that there is possibly millions of dollars of uncollected and delinquent property taxes listed on the Weber County Web site.

The immediate response from the County Commission was that the Utah State Tax code prevents them from more aggressive collection of property taxes. That is simply not true. Section 59-2-1358 clearly provides the county with ample latitude to collect these delinquent taxes up to the final act of foreclosure.

In fact, the County did pass a minor change in 2008 regarding subdivisions that provides better leverage to collect delinquent accounts. This could be expanded beyond subdivisions to include all delinquent taxes from any developer. Weber County has many options that could be explored with some innovative thinking and application.

Our subsequent e-mail to Jan Zogmaister included some possible options for the County to consider for collection prior to foreclosure.

It is our unhappy duty to report that according to Jan Zogmaister today, the Commission is already involved in many issues regarding the county and state and she did not mention any plans to investigate or rectify this tax issue.

All the information below on taxes is available at the Weber County Web Site; it is part of the public record.

We took a sample of just 6 property owners in Ogden Valley where we live, and found that those six owe $334,000 in delinquent property taxes just for the tax year of 2007. We also found that most of them owe more for other years including the tax year of 2008.

If this sample in Ogden Valley is indicative of the entire Weber County tax base, there could be millions of uncollected and delinquent property taxes due in our County.

What makes this unacceptable is that the rest of the property owners that pay their property taxes on time, bear the burden of carrying these delinquent accounts until they are paid. In some cases this may take up to 5 years since many delinquent tax payers wait for the sale of their property before paying.

The most insidious hidden part of this process is when the land or home is sold and the delinquent taxes are finally paid, the selling property owners increase the price of the property to cover the delinquent taxes plus the penalty and interest that they pay for being delinquent. This additional cost for the property works it’s way into the tax evaluation system and results in higher property taxes for everyone in the area.

If anyone is under the impression that this is a insignificant amount of money, we suggest you visit the Weber County Web Site and review the delinquent lists starting in 2008, and back several years.

In addition, we would suggest your read the article by Lee Davidson in the Deseret News today regarding delinquent taxes.

This is a major misuse of taxpayer money, in effect almost a “Ponzi” scheme with taxpayer money. If you are unhappy about “carrying” these delinquent tax payers to the tune of millions of dollars, let your county commissioners and the Utah Governor know about it. The e-mail addresses for all Utah officials can be found at the VCRD web site http://vcrdutah.org/county.html.

Larry and Sharon Zini

Utah Home Values

The property tax payers in Utah should be asking some serious
questions of their County Tax Assessors office.

According to the latest NBC news report, home values across
the country have dropped 19% in the last year. Some areas such
as California, Nevada and Florida have dropped up to 34%.

The Weber County Assessors office would have you believe that Utah’s
home values are somehow immune from this nationwide drop in
value so they can continue to raise or not reduce your property taxes.
A person in Utah that now pays $3,000 a year in property taxes would realize a $570 drop in taxes if their property were assessed 19% below the previous year.

Some examples: Salt Lake City zip 84108 has had a reduction in home values of
18.39%, Holladay, zip 84117 has had a reduction in value of 14.63%.
These stats are from A Real Estate website in Salt Lake County.
It is reasonable to accept that the drop in values may not be exactly the same
in Weber County, but all we receive are tax increases from our Weber County
Assessor when the entire housing market is dropping in value.

The problem with the Assessors office is they do not readily share
the key information with the taxpayers on how they arrive at the
assessments. From what can be learned, they are inconsistent
and arbitrary and it is difficult to get an explanation when you
have questions.

The Weber County Assessor has to be responsible to some entity,
and it may be the 3 Weber County Commissioners. We should write
and call their offices to get some answers.

Your VCRD Staff

Guest Post from State Rep. Gage Froerer on Property Tax Reform

As you know, I have been actively working as a member of the Revenue and Taxation Committee to come up with solutions to our property tax problem in the Valley and the State of Utah. The time is now for definite action if we want to make any changes in the existing tax system in the next legislative session. I would ask each of you to review the issue as presented below and get back to me before mid October with your ideas and suggestions.

The Problem As I View It!
Predictability is the foundation of a fair and soundly administered tax system. Most importantly, a predictable tax system ensures tax certainty for taxpayers. "Tax certainty" means that taxpayers can, year after year, consistently expect a predictable tax bill.

No one likes an unpleasant surprise when it comes to paying taxes. Taxpayers want to be certain as to what their tax liability will be and when the taxes are due. Tax certainty improves both taxpayer compliance and support for the tax system. Taxpayers lose confidence in the tax system, and view it as arbitrary and unfair, if it cannot provide a predictable and stable tax obligation.

Tax certainty is especially critical under the property tax. The property tax is the only tax where the government determines the tax to be paid and then sends a bill to collect the tax that is due -- months after the assessment. Unlike sales or income taxes where tax choices are largely in the hands of the taxpayer, a taxpayer's property tax liability is determined and controlled, in large measure, by the government.

Utah's current property tax system, based on fair market value (FMV), does not ensure tax certainty for taxpayers. Difficulties in accurately determining fair market value on a mass basis, volatile housing prices, shifting tax burdens, and tax rate increases, have led to dramatic increases in property taxes for many Utah taxpayers.

Improving Taxpayer Certainty for Property Taxpayers
Improving taxpayer certainty will help restore taxpayer confidence in the property tax system. Under my proposal, property taxpayers can be certain that their annual property tax liability will nearly always be within certain bounds.

Highlights of the plan include (click here to view):


Issues for Discussion and Comment

1. Should this plan apply to residential property only? (Owner occupied and/or rental?) Or all locally assessed property? (No change is contemplated for personal property or centrally-assessed property.)

2. Should this plan require a dynasty provision? How are property transfers between spouses treated? Between generations?

3. Should this plan allow a transferring of the "fixed basis" from one house to another? Within counties? Between
counties? How many times? Age limit?

4. How to handle drop-in housing prices? Drop below either base year level or acquisition value?

5. Is the "growth factor" set statewide or will it vary by region?

6. How to handle new construction on raw land when no sale occurs. How is the tax basis determined? Cost basis?

I look forward to your comments and suggestions and I can ensure you that by working together, we can make a difference in our County and State.

Comments should be sent to Gage Froerer prior to October 15th.

Gage Froerer
District 8 State House of Representatives.
801-391-4233
gfroerer@utah.gov

One Idea on Property Tax Reform

Blogmeister Update: Be sure to view the Property Tax Reform Web Site that we have linked prominently in the right column under the ACTION ALERT.

Below is one suggestion for some property tax relief for Utah citizens. There are many other possible approaches, but the citizens of Utah need to get their constructive views to their elected representatives.

We feel the place to make changes is in the movement of education funding from property taxes (50-60% of the bills) to consumer (sales) taxes. This would result in an immediate reduction in property taxes for almost everyone, and would spread the education tax load more equitably to all consumers across the state. The legislature could enact a trigger property tax supplement if sales revenues were not high enough in an off sales year. We think the public reaction would be favorable with the exception of the education people (UEA), but so many retired and low income Utah residents may be unable to pay the looming property tax bills if something definitive is not passed this year.

It is difficult to fathom the opposition of the UEA in Utah to almost any property tax reform. This approach would not have to change the amount the educational system receives, it would just change the source. Two states, Michigan and Georgia, have passed similar legislation.

Failure to act positively by our state legislature may force the Utah voters to take matters into their own hands with a statewide tax initiative similar to Proposition 13 in California in the 1970s.

Let your voices be heard! Write to the tax Committee chairmen listed in the earlier post and write to our State Senator and State Representative as well!


Larry and Sharon Zini

Property Tax Appeal Deadline Monday

We are short on time, but wanted to highlight a Standard Examiner article reminding us of the Monday deadline for appealing your property taxes.

From the Di Lewis article we read:

The appeals received so far have not been concentrated in any one area, and (Roger) Brunker (Chief Deputy of the Weber County Auditors office) said he has not seen anything like the mass appeals from Huntsville residents last year.

Larry Zini, who lives in Ogden Valley near Huntsville, said taxes are “going up at a startling rate. ... It’s crazy.”

His wife, Sharon Zini, filed an appeal last year after the estimated value of their land nearly doubled. This year, Larry Zini said, the amount he is paying in taxes went up by 27 percent, on top of the 22 percent increase he paid last year.

However, Huntsville town Councilman Richard Sorensen said he does not think the property values rose as drastically this year in Huntsville.

He said there is not “the uproar there was last year” over increased assessment values.

“Last year one of the properties in town went up 800 percent. I think it (the value of properties) went up so much last year we got the ear of the assessor’s office,” he said, adding his own taxes went down $400 from last year.

Click here to read the article in its entirety.


We want to hear from you, Ogden Valley. What happened with your taxes this year?

Did you have a significant increase, decrease or did they stay the same as last years outrageous bump.

Are you willing to fight for alternative taxation during the upcoming legislative session?

Click on the comments link below and let us know.