Home | Classifieds | Place an Ad | Public Notices | Subscriber Services | 928 Media Lab | Real Estate Search | Galleries | Obits | TV Listings | Contact Us
The Prescott Daily Courier | Prescott, Arizona

home : opinions : editorials November 25, 2015

8/22/2012 10:02:00 PM
Editorial: Honor system leaves town coffers lacking
The Daily Courier

The honor system is gone.

That is what has happened in the Town of Prescott Valley when it comes to businesses remitting sales tax proceeds to the state.

Town officials currently are pursuing two avenues on this. First, they are reviewing an ordinance to revoke, cancel or not renew business licenses. Extreme? Hardly, town officials say, considering the non-payment of about $145,000 in sales tax proceeds by 19 businesses over the past 10 or so years. The second tack is getting those entities to pay up.

Considering the interviews the Courier did, based on the town's documents related to these delinquencies, the latter move will be more difficult than one might think.

As many as 16 of the 19 were contractors - and most of them are out of business.

Two others appear to be from property short sales or homes sold out of foreclosure.

And one is a business shut down because of its land leaser's bankruptcy.

Most, if not all, appear to be lost opportunities for the town to collect the money through liens or otherwise.

While these delinquencies are a mere drop in the tax bucket for the town - $145,000 of about $11.8 million (for 2012-13, for example) - they could pay wages and benefits for three employees, town officials said.

Still, those involved can learn at least three things from this:

• Always pay your taxes.

• Assume nothing. This could get frustrating for those people who, for instance, bought a house whose former owner may owe sales taxes.

• Be proactive. The town may have to write these off as losses if the business - or especially the person - is gone.

There you have it: Honor in business appears to be lacking to some degree. Either that, or we are seeing clearly more consequences of the Great Recession.

You choose.

    Most Viewed     Recently Commented
•   Fixes planned for Hwy. 169 crash site near Dewey-Humboldt (2339 views)

•   Gaver brother may be found incompetent to stand trial in Cottonwood Wal-Mart melee (1787 views)

•   One killed in Highway 169 crash (1787 views)

•   ADOT eyes roundabout for Prescott Valley's Fain Road (1300 views)

•   Willow Creek Dog Park is Prescott's busiest (1289 views)

Reader Comments

Posted: Thursday, August 23, 2012
Article comment by: Common Senzi

This is the same PV which assesses homeowners various improvement fees and sells their houses when they can't pay. I have little sympathy.

Posted: Thursday, August 23, 2012
Article comment by: The Emperor Has No Clothes

How dare the lowly business people of this fair shire smite the King and his Court. One percent of his wealth has been stolen. Thus the King by decree will order his Scribes and Tax Collectors to diligently work into the night crafting a new law to hang around the necks of the faithful business owners making sure they do not stray from the “Privilege” Tax. After all, do they not know it is a “Privilege” granted them to own their business? What simple minded people they must be.

For all in the shire already know that the Kings Castle has fallen into disrepair. The three long years since it was built has been difficult and the worn, dingy halls must be restored once again fitting of the Ruling Class. The missing 145,000 thousand pieces of silver is a mere pittance short of the 200.000 thousand needed. The remaining can easily be purged from the minions via the mystic mechanical eyes monitoring the crossroads of their pathways.

See how easy it is to take the simple name of a Tax and forever inflate the subconscious of those in power! I have always thought there was something very disturbing in calling it a PRIVILEGE Tax!

Posted: Thursday, August 23, 2012
Article comment by: Bill Williams

Well, look at who is in charge at city hall. The Mayor is not a strong leader. You have had people like Flannery on council who would rather tell jokes than do real work. Other council members who jump from government job to government job (or one political race to another). And a public works director who is asleep at the wheel these folks may not be the tax collectors, I grant you that, but the lackadaisical attitude is rampant in every department except the police.

Posted: Thursday, August 23, 2012
Article comment by: just thinking

Two years ago I worked as a tax preparer and from my knowledge you only get a tax refund for 3 kids. Not 10 or 20.

I have seen some people say, oh don't add this one then he lives with my brother.

There are no checks and balances but that is no reason to fabricate just because this is an election year.

Posted: Thursday, August 23, 2012
Article comment by: @ an American

Let's not through the baby out with the bathwater.

Funny how you zero in on an example of illegals - how many fat cat white dudes do you think there are cheating on their taxes?

What about the banks committing fraud and making billions?

But no - it's all about the illegals. And of course, because fraud happens there is absolutely nothing good that comes from paying taxes.


Posted: Thursday, August 23, 2012
Article comment by: Sam Genres

The City of Prescott has a many more deadbeats than PV. Courier needs to run a story on the amount of write-offs in Prescott over the last 5 years. Very little enforcement of tax balances due despite the claims of the staff.

Posted: Thursday, August 23, 2012
Article comment by: Taxes are Too High!

Taxes are to high!

Business are hurting and can't afford high taxes!

City officials waste money on foolish programs!

City officials are clueless!

Posted: Thursday, August 23, 2012
Article comment by: An American

Why pay taxes at all? The government just spits in our face and wastes the money. I am sitting here watching a news story of how the feds refunded $7 billion in earned income tax credits to illegals and people who don't even work last year. The two cases that were most disturbing were the two illegals that claimed they had 20 kids living in their trailer houses, this earned them a $30 thousand dollar refund.........
Reminds me of a cartoon where the king is speaking to the peasants, "I will give you food stamps, healthcare, welfare checks, free housing, cell phones, and jobs" and one peasant speaks up and says, but sir, why do we need jobs?

Posted: Thursday, August 23, 2012
Article comment by: Larry t

The state register of contractors hands out license to anyone with no regard to there credit score. If a person is not responsible enough to pay there own bills what makes you think there going to pay the taxes they collect. Most states require a credit score of 650 or better to get a contractor license or any other license.

Posted: Thursday, August 23, 2012
Article comment by: k b

Let me see if I get this right, a little over 1% is outstanding and that means the "honor system" is failing? When businesses fail they tend to leave a trail of unpaid debts. I'd say a 1% rate is remarkable in these times, but not for the reason the editor thinks.

Last year, the almost half of my invoices went uncollected. The year before, it was roughly 20%. I'd be tickled pink with a 99% collection rate in times like this.

Posted: Thursday, August 23, 2012
Article comment by: rumford wilson

" Honor in business appears to be lacking to some degree."

A bit of an understatement, I would say.

Article Comment Submission Form
Comments are not posted immediately. Submissions must adhere to our Use of Service Terms of Use agreement. Rambling or nonsensical comments may not be posted. Comments are limited to Facebook character limits. In order for us to reasonably manage this feature we may limit excessive comment entries.
Submit an Article Comment
First Name:
Last Name:
Anti-SPAM Passcode Click here to see a new mix of characters.
This is an anti-SPAM device. It is not case sensitive.

Advanced Search

HSE - We want to hear from you
Find more about Weather in Prescott, AZ
Click for weather forecast

Quick Links
 •  Submit site feedback or questions

 •  Submit your milestone notice

 •  Submit your letter to the editor

 •  Submit a news tip or story idea

 •  Place a classified ad online now

 •  Browse the Yellow Pages

Find It Features Blogs Milestones Extras Submit Other Publications Links
Classifieds | Subscriber Services | Real Estate Search | Galleries | Find Prescott Jobs | e-News | RSS | Site Map | Contact Us
© Copyright 2015 Western News&Info, Inc.® The Daily Courier is the information source for Prescott area communities in Northern Arizona. Original content may not be reprinted or distributed without the written permission of Prescott Newspapers, Inc. Prescott Newspapers Online is a service of Prescott Newspapers Inc. By using the Site, dcourier.com ®, you agree to abide and be bound by the Site's terms of use and Privacy Policy, which prohibit commercial use of any information on the Site. Click here to submit your questions, comments or suggestions. Prescott Newspapers Online is a proud publication of Western News&Info, Inc.® All Rights Reserved.

Software © 1998-2015 1up! Software, All Rights Reserved