County to waive penalties and interest for Splash Summit if back taxes paid by Nov. 20

The Utah County Board of Commissioners voted to defer and abate penalties and interest on both real- and personal-property taxes for Splash Summit Waterpark if the owner pays the outstanding tax principal by close of business on Nov. 20, 2020.

The owners, who identified themselves as the new ownership group of the former 7 Peaks water park, told commissioners they suffered major revenue losses in 2020 and asked that the county forgive penalties and interest while they pay the principal. "We would commit to pay that as quick as possible within the next 15 days," the owner said, describing 2020 revenues at about 40 to 50 percent of a normal year and noting they lost group business that would normally bring in hundreds of thousands of dollars.

County staff offered an alternative recommendation that the board find it is in the public interest to defer penalties and interest for 30 days and abate those charges if Leduc LLC pays the property and personal property taxes by the deadline. Staff read the motion into the record: "the board would make the finding that it's in the best human interest to defer the penalties and interest on the personal and real property taxes for 30 days…and if Leduc LLC pays the property and real property taxes…by end of workday on 11/20/2020, then the deferred penalties and interest will be abated." (Staff reading of motion.)

Commissioners debated the request. One commissioner noted the tax delinquency predated the COVID-19 pandemic and questioned whether abating penalties and interest would be appropriate where several years of arrears and a prior bankruptcy existed. "These back taxes are not related to COVID-19," the chair said, urging caution given the property's bankruptcy history and multi-year delinquency. Other commissioners said the county has set aside COVID relief funds to help businesses and signaled willingness to use that flexibility to address penalties and interest while preserving collection of the tax principal.

After discussion the board approved the staff-recommended, conditional abatement by a 2–1 vote. The motion requires payment in full of the tax principal by the close of business on Nov. 20, 2020, to trigger abatement of penalties and interest; if the owner fails to pay by that date, penalties and interest will continue to accrue. The board did not forgive any portion of the tax principal.

The action followed a presentation by the owner explaining the property was acquired through foreclosure after a prior bankruptcy and that the current ownership group is distinct from the previous owner. The owners said they are pursuing financing but that lenders require taxes to be current before approving a loan.

The county did not disclose the precise outstanding principal amount during the public discussion; the record indicates owners and staff agreed on the payment deadline and the conditional nature of the abatement.

What happens next: the county will expect the payment by Nov. 20 to trigger abatement of penalties and interest; if payment is not received, the tax obligation will continue to accrue penalties and interest and the county will resume standard collection steps.