ECONOMY

State names 111 Salem taxpayers who owe over $50,000

Marijuana shops, a pizza parlor and a developer are among Salem’s delinquent taxpayers who owe a combined $19.7 million to the state, according to records of the Department of Revenue.

The agency on July 14 began publishing the names of people and businesses on its website who owe at least $50,000 in unpaid taxes, penalties and interest. That includes 111 delinquent taxpayers in Salem.

The publication comes two months after the Revenue Department started notifying taxpayers who meet the list’s criteria by mail that their names may be posted online. The state Legislature in 2019 passed SB 523, which authorized the Revenue Department to publish information online about delinquent tax debtors owing over $50,000.

Such debts can be resolved by paying them in full or through a department-approved payment plan. Those who do not respond to two warning letters from the state may see their name on the list.

The list is updated daily, and some debtors have paid off their debt since it launched.

Among Salem’s list were several names in the marijuana business with the top debtor, Troy Duzon, owing $3.6 million. 

His company, Duzon Enterprises LLC, owes over $1.3 million to the state. The company has run local dispensaries Oregon Cannabis Outlet and Re-Leaf Salem, according to Revenue Department records. 

A person’s owed amount may include some or all of the debt listed under their business. They may also owe other debt such as personal income tax or for a second business, according to Rudy Owens, spokesman for the Revenue Department. Owens declined to say whether that was the case for any individual taxpayer.

According to the state’s delinquent taxpayer list, Rye Waters, a marijuana retailer which has operated under the name Greenbuds, also owes over $577,000. 

Two others, Scout Lake Retail LLC and Silver Falls Retail LLC, owe $562,000 and $416,000, respectively. Both companies are affiliated with marijuana retailers Crush Cannabis and Gorgeous Green Retail LLC.

Duzon and leaders of the other delinquent companies could not be reached for comment.

The new public naming approach comes as Gov. Tina Kotek seeks to clamp down on marijuana tax delinquency by not allowing license renewals for cannabis companies that have not paid their taxes.

Kotek announced the new policy on May 16, requiring dispensaries to provide certifications from the Revenue Department showing they have paid all state taxes or have a payment plan for their tax debt anytime they try to renew their licenses with the Oregon Liquor and Cannabis Commission.

Donatello’s Pizza, a former local chain, owes the state about $429,000. The company previously had locations in Salem, Monmouth, Independence and Marion Forks, but records of the Oregon Corporation Division show it was administratively dissolved on July 20, meaning the state no longer recognizes it as a business. 

The former Salem location at 3981 Commercial St. S.E. is now listed online as Ollie’s Pizza & Game Center.

The Revenue Department’s catalog showed that company president Michael Pfohl owed about $400,000.

Charles Sides, a developer who has led commercial and mixed-use projects around the Salem area, owes nearly $403,000. The Revenue Department lists his company as News LLC.

Sides was fined $5,300 in June 2022 by the state Department of Environmental Quality for open burning of demolition waste and plastic on a 19-acre property he owned at 1800 Cordon Rd. S.E., according to the civil penalty.

There are 236 Marion County residents with recorded liens totaling about $38.1 million as of Wednesday, according to Owens.

​​In Polk County, there are 76 taxpayers with recorded liens that total about $9.2 million.

For delinquent taxpayers who don’t live or have real property in Oregon, the department records the warrant in Marion County where the state capital is, according to Owens. With those debts included, there are 791 taxpayers in Marion County with recorded liens that total about $157.3 million.

Taxpayers can contact the department online or by phone to arrange to resolve their debt – 503-945-820 for individuals 503-945-8100 for businesses, according to a news release from the Revenue Department.

Contact reporter Ardeshir Tabrizian: [email protected] or 503-929-3053.

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Ardeshir Tabrizian has covered criminal justice and housing for Salem Reporter since September 2021. As an Oregon native, his award-winning watchdog journalism has traversed the state. He has done reporting for The Oregonian, Eugene Weekly and Malheur Enterprise.