Last week, the North Coast Journal ran a list of properties in tax default, and several properties connected to Eureka big cheese Rob Arkley made the list. (For a reminder of the many corporate entities housed at Arkley’s business address, go here.)
The properties in default include those owned by CUE VI LLC, Samoa Dunes I, Sequoia Investments XI, SN Properties Unencumbered, and Ocean View Ranches. The amount owed on these properties, including penalties and fees, totals more than $313,000.
Arkley likes to promote himself as a do-gooder rich guy. But when the community where he lives and does business falls on hard economic times, Arkley fails to fulfill the basic responsibilities of paying his property taxes.
Yet he has plenty of cash to throw at bogus ballot measures and other political schemes. Go figure.
When the going gets tough, the tough start going. . .
With all the wondrous things the Arkley’s do to our community I think it’s outrageous that we expect them to pay taxes like the rest of us! And apparently Rob thinks so too.
One more check off the Heraldo list for the week.
Check Tyson
Check Arkley
But property taxes are so BORING. Helping support the whole community? Pshaw! What’s in it for Rob?
Remember Rob’s comment upon announcing his decision to purchase the balloon tract? “If you’re me, do you really care what the city thinks? I do.
Property taxes pay interest on debt service only- bankers love it. Property taxes rose from the 1950′s due to debt after ww2.
They are communist and immoral and should be dealth with through our American roots, tar and feathers.
I would like to nominate BF’s 8:49 post for “dumbest comment of the week.”
Jane? Don’t forget “most a-historical.”
And most hysterical.
Common business practice for the wealthy, the money is tied up in some investment that will reap more than a penalty for late payment of taxes owed. Read the list annually posted and you will find most delinquents are the most prominent names.
Maybe Algeria will take him in
I notice no one can put any kind of a pro Arkley spin on this. Even Ben’s lame attempt was just a shot at Heraldo to deflect attention from the real issue, that Rob is a dead-beat.
Doesn’t make it right, 69er. Maybe there should be additional penalities when the arrears are quite large. It would discourage using property tax money for investments without hurting the little people who are behind because they don’t make enough to live and pay their property taxes.
Unfortunately this is a standard business practice. Land owners routinely hedge property taxes against future renovations or building or the sale of that property. These taxes eventually get paid but the wait can sometimes be years while the property goes through different stages of improvement.
Not saying it makes it right, just pointing out the fact he is not the only one doing this. There are others just as guilty but only Rob is outed in this vendeta, why not the others????
Yeah, it’s not right but remember the golden rule… He who has the gold…
CUE is supposed to stand for clean up Eureka. What’s it gonna take Eureka?
Tax laws and penalties are authored by and for the privileged.
When you own multiple buildings to lease, you can pay little business and personal taxes by ensuring that you maintain an adequate inventory of empty buildings to offset the taxes on the profitable ones. It’s the local good ol’ boy’s equivalent to Wall Street’s shell and pea games, (something to tie them over until “the market picks up”, and they can resume harvesting “their” public subsidies for more big homes and big boxes).
Add that to retaining their buildings in great-granddaddy’s name, (while the county looks the other way), and you have a perpetual inventory of blight in Eureka.
Start taxing those empty buildings and lots for what they could be earning, and watch them get repaired and rented at more reasonable rates.
Or, sold to someone else who will.
Lots of people pay property taxes late for various reasons. Could be a tax strategy, cash flow needs or somebody was asleep in the accounts payable department.
Interest and penalties will be paid and the county and the state make money off the late payments.
But any excuse for Heraldo to inflame the left wingers.
Uh huh. Arkley is doing Humboldt county a service by NOT paying his taxes.
Maybe we can increase the tax burden further, seize the properties and redistribute them to the poor and needy by building homeless camps. Win-win politician scenario.
I have also heard that Arkley had his jet repo’d a couple of weeks ago. Someone is looking a little cash poor these days-no wonder he’s so desperate to flip his toxic marina center.
I’m so happy Arkley is broke. Now Humboldt County will finally be fixed. Yeah!
Chump change you chumps.
Republicans don’t care about tax evasion or hypocrisy, Heraldo. You need to break it down to their low intellectual level. TO SUMMARIZE the salient point: Robber Arkley is a moral midget who has no business being in business. If Bank of America considers Arkley to be a corrupt fraudster, he certainly must be. It takes one to know one. Only Republicans would be stupid enough to take the Arkley swindler seriously.
Not paying property taxes = cheap loan/business strategy. Arkley is strapped for cash and is not paying many of his debts. The taxes offer an opportunity for float. The jet repo appears to be true but probably worked in his favor since he most likely owed more on it than it was worth and was not flying it anyway. All said, Arkley is still in business and employing as many people as he can. Hopefully, he will pull out of the downturn, pay his debts and continue on. Still, in light of all the turmoil, it might be wise for him to cut back a little on his personal, grandiose lifestyle which seems to have not been interrupted by his business setbacks.
At least Arkley does business in public. Not like you Heraldo, hiding behind the skirt of this blog.
“cheap loan/business strategy”.
No, it is NOT cheaper.
Why don’t you people lobby your DA to press charges? Or stage a tax revolt. If Arky doesn’t have to pay, no one pays.
“Equal protection under the law”.
“cheap loan/business strategy”.
“No, it is NOT cheaper”
But, the time frame is different than most other obligations. It can take several years of delinquent taxes before a property actually goes to tax sale. Try taking that long on your mortgage, medical bills, PGE bil, or car payment. So, it can be an attractive method of deferring payments until the economy or your fortunes turn around.
Very few defaulted properties are actually sold for taxes. Usually people work out a deal with the County to pay off enough of whats owed and prevent a tax sale.
One time, 1982+/-, I didn’t pay the property taxes on my house when they were due. At that time the statutory penalty was around 3% per year. Interest rates were over 12%, credit cards even higher. So it didn’t make sense to borrow money to pay the taxes. It did make sense to not pay taxes if you were in a pinch, which I was. The system was changed at some point to allow for higher penalties and interest on back taxes.
I am sympathetic to those who are struggling with loss of a job, medical bills, or other calamity, and take advantage of the property tax system to buy some time. While I don’t begrudge anyone the opportunity, I will say that wealthy investors who game that same system draw less sympathy.
Brad apparently has a reading problem or he wouldn’t have made that last post.
I have a bored at work problem….
High Apologist says:
September 6, 2011 at 12:53 pm
“Lots of people pay property taxes late for various reasons. Could be a tax strategy, cash flow needs or somebody was asleep in the accounts payable department.”
You can not be serious! Strategy? Cash flow needs?
Someone is asleep at the wheel at High Ball Land. Way to spin doctor on behalf of a goldbricker.
Scum of a feather, cluck together. As they say in England, you birds can sing.
Thorstein Veblen is right on target with his 10:10 am comment, where he says:
But, the time frame is different than most other obligations….So, it can be an attractive method of deferring payments until the economy or your fortunes turn around.
I am sympathetic to those who are struggling with loss of a job, medical bills, or other calamity… I will say that wealthy investors who game that same system draw less sympathy.
Exactly.
Fact checker, Sure they do, ask Floyd Squires, here is one angle to look at it. How does not receiving over 300K in property tax impact the local tax collectors office? It is definitely an impact. what is the risk of not paying, well very little, it takes 5 years to actually risk losing the property to auction and then as Floyd so skillfully knows, all you have to do is not pay the feds too, they attach an IRS lien and noone will bid on the property so you wont risk losing it. This is just another opportunity to flex ones power and control over local government. Humboldt County is Proving Ground, can we absolutely control everything, policy, progress, growth, the economy, the harbor, the rails..everything. Hmm can they? They are giving it a pretty good shot.
The thing they can not control is the will and determination of the people.
Fact Checker, I did not know for sure until your last post, but you really are dumb.
1.19pm, people will easily bid on the property unless the total liens are more than the value of the property. And unless you die insolvent all those county & IRS penalties and interest will eventually be paid. Your logic is deeply flawed.
High Apologist says:
September 7, 2011 at 3:30 pm
“…people will easily bid on the property unless the total liens are more than the value of the property. And unless you die insolvent all those county & IRS penalties and interest will eventually be paid.”
Still apologizing and spin doctoring for your goldbrickin’ buddy Robyn Junior? Yeah, the mega-rich gettin’ richer while not paying their fair share of taxes is treasonous.
The property taxes Rob Arkley’s companies didn’t pay were for 2008. It’s a good bet he didn’t pay for 2009, 2010, or 2011. As someone noted, you can get away with not paying property taxes for 5 years before you risk losing the property. That means the Arkley companies are most likely $1 million+ in arrears ($200k x 5 years). And they will NEVER have to pay it. All Arkley has to do is pay the minimum necessary to keep the property from being sold for taxes. He never has to catch up. If the company continues, it only has to pay taxes from 5 years ago, while pocketing the cash for this year and the four previous. If the company goes bankrupt, it doesn’t have to pay. If the land is sold the buyer effectively ends up paying the property taxes in the purchase price. Plus Arkley gets to write off the accrued property tax on his federal income tax, whether he wrote a check or not.
deadbeat
[n. ded-beet; adj. ded-beet]
1. a person who deliberately avoids paying debts.
http://dictionary.reference.com/browse/deadbeat
Shall we all just worry about this loser Arkley or get on with trying to solve real problems in Humboldt County??