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Clark County to end pursuit of $114,042 in delinquent taxes

Treasurer’s office says going after accounts costs more that amount owed

By Jake Thomas, Columbian political reporter
Published: April 12, 2018, 8:25pm

This year, almost every Clark County property owner will see an increase in their bill as a result of a school funding package that will increase the statewide property tax from $1.89 to $2.89 per $1,000 of assessed value.

But as Clark County property owners prepare to fork over more money for tax bills that are due at the end of the month, the Clark County Treasurer’s Office is about to formally give up on attempting to collect $114,042 in delinquent taxes.

Clark County Treasurer Doug Lasher said that his office has determined that continuing to pursue collection on these accounts is worth more in staff time and resources than the amount owed. In some cases, there is nothing the county can legally collect, he said.

“We make an effort, but when it finally connects that there are no assets and no way to collect it, we have to move on,” he said.

The treasurer’s office is preparing a resolution to take to the Clark County Council. If approved, it will allow the treasurer’s office to submit a list of delinquent accounts to Superior Court to permanently “extinguish” them from the county’s tax rolls.

Neil Heyer, delinquent tax collector, said that the big reason why the county gives up on trying to collect the property taxes is because of a lack of remedies under the law. He said that delinquent taxes are often owed on a business’s personal property, which includes machinery, equipment and supplies. These items can be sold off much more easily than real property, land and buildings.

“What tends to happen is a business closes and they liquidate the assets in the middle of the night or some point,” he said. “We have the ability to seize the assets, but if the assets are gone, there is nothing left to seize.”

He said the treasurer’s office can attach a lien to land or buildings owned by the company for unpaid taxes on personal property. But he added, “You don’t often find real estate in a business’s name, so that takes out one of our primary statutory remedies.”

He said that businesses are typically structured to shield their owners from taxes owed by the business (often under a limited liability corporation).

That’s what happened with the Wubben Brothers Inc., a defunct development company. A county staff report states that the company owes $52,427.32, the largest amount the treasurer’s office is seeking to write off.

The company was dissolved in 2012, according to Washington Secretary of State records.

The Columbian visited the address listed on the company’s business records. Dennis Wubben, who is listed as an owner of the company, answered the door. He explained that the company liquidated its assets after dissolving. When asked why it didn’t pay taxes owed, he said that the company had to pay off creditors.

“It goes to the banks first,” he said, before saying he didn’t have time to comment further.

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The building listed on the address for Wubben Brothers Inc. is owned by a company called Part IV Properties LLC, according to county property records. The company’s registration with the Washington Secretary of State lists its owners as Nicole, Dennis and Jerry Wubben, the same three people who owned Wubben Brothers.

Lasher said that county prosecuting attorneys looked into putting a lien on the owners’ real property but decided they couldn’t because the company wasn’t the same.

The second largest unpaid property tax bill the treasurer’s office is preparing to write off is also a company with ties to the Wubbens. J&R Paving Inc. owes $8,104.42 in taxes. The county staff report notes that, like Wubben Brothers Inc., the company’s property was “dissipated.”

Washington Secretary of State records show the company has the same registered address as Wubben Brothers Inc. and lists Tammy Wubben as its registered agent. Tammy Wubben couldn’t be reached for comment.

The third largest delinquent tax account the treasurer’s officer is seeking to write off is for the Bank of Clark County, which owes $7,493.38. Heyer said in a follow-up email that the bank was taken into receivership by the Federal Deposit Insurance Corporation in 2009. As a result, the bank claimed an exemption on its taxes and the treasurer’s office determined there were no viable options to collect, he said.

“In our opinion, it’s not the most efficient process, and we do the best we can,” said Alishia Topper, Clark County tax services manager, of trying to collect taxes on business personal property. “It would be so much better if business property taxes could be attached to a license instead of individuals bills (that the treasurer has to collect on).”

Lasher said that the law regarding tax collections has its roots in the state’s territorial days, when land was cheap and a business’s personal property was more valuable and could be more easily seized.

Lasher said his office is typically able to collect on more than 98 percent of taxes owed; the amount of unpaid taxes stays about the same each year.

The county staff report lists other reasons why the treasurer’s office was unable to collect on owed property taxes. In some instances, property was destroyed, such as a mobile home that caught fire. In others, the business declared bankruptcy. Sometimes, the county made errors in calculating the taxes owed.

According to the county staff report, of the $114,042 the treasurer’s office is planning to not pursue, 18 percent, or $20,840, would go to county funds. Clark County has a current two-year budget of $946.9 million.

The remaining $93,302 of the uncollected funds would’ve gone to taxing and special assessment districts within Clark County, according to the report.

Lasher said that in some instances, a company may be good at what it does but struggle with running a business. He said that a company might hire a relative to keep its books instead of a professional bookkeeper. As a result, it might end up not complying with the law.

Topper said the appeal from the treasurer’s office is to reach out for assistance rather than end up on a list.

“A lot of times it’s not malicious, and it’s not intentional,” said Topper. “The majority of people are doing their best.”

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Columbian political reporter