Thursday, February 10, 2011

Trying to Be Rational About Those Past-Due Taxes...

It is kind of funny that city attorney Medina should have been late in paying taxes on a property back after he went to work for the city, considering that Medina was apparently involved with advising the Council that there was a problem with Victor Hernandez. Funny that several higher-ups in the city have been late while employed by the city.

But how serious is it really?

There's nothing morally or criminally wrong with being late in paying taxes. It is purely a business or personal decision. You pay now or you pay more later. Either way, you do pay your own way. You are not a moocher.

It doesn't hurt other taxpayers since delinquent taxes carry interest penalties that are so high they would be illegal even for a credit card company!

Since interest and penalties are so high, it does pertain to business judgment that one does not pay taxes even if they have to borrow money to do it. But it is not a black mark on character, the way so many are spinning it.

When interest and penalties are eventually paid, the tax authority and maybe taxpayers too come out ahead. More money received by LCAD.

The reason the city charter seems to make a big deal over debts owed the city is because employees and councilmen might be in a position to influence collection of their debt, or to cook the books. It's a matter of conflict of interest. Which by the way does not apply when LCAD is in charge of assessing and collecting taxes.

To come to Medina's defense, the guy is a businessman as well as a lawyer and former judge, has a lot of property, many irons in the fire. He could have overlooked that property, could have sold it to someone under a contract and then found they didn't pay the taxes as they should, could have moved a family member in with the provision they pay the taxes. He could have bought the property with taxes owing on it. All these things happen all the time.

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