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Santa's Land sues county for attempting to collect back taxes

By Lisa Majors-Duff
A move on the part of Jackson County's tax collector to collect more than $56,000 in back taxes from a Cherokee businessman has resulted in a lawsuit against the county.

Beverly Buchanan, Jackson County's tax collector, with the support of the county commission, attached three separate bank accounts belonging to Santa's Land Inc. and Danny Lee Lyons last month. The Cherokee amusement park owner has "totally ignored his tax bills since 1981," Buchanan said, making him one of the county's top delinquent taxpayers.

Since mid-March more than 50 individuals and businesses owing back taxes to Jackson County have been targeted by Buchanan. The amounts being sought range from Lyons' high of more than $56,000 to some property owners owing up to $3,000, she said. Efforts so far have netted the county about $100,000, she said.

"It's definitely working," Buchanan said of her office's issuance of final notices with threats to collect back taxes. In addition to being able to attach bank accounts, the tax collector is allowed to garnish wages and seize personal property from those not paying their taxes.

"This policy has always been in effect, but it wasn't always enforced," county Manager Jay Denton said. "It's time now for all Jackson County citizens to pay their taxes."

Lyons, who did not return messages left by The Sylva Herald, did pay his taxes this week, Buchanan said, freeing up accounts at Carolina Community, Wachovia and First Citizens banks. Without access to funds in these accounts, Lyons claimed in his suit against the county that his business, which was scheduled to open April 1, would suffer.

Also in his suit, Lyons claims that Jackson County does not have the right to collect ad valorem taxes on his leasehold property on the Cherokee Indian Reservation.

Jackson County is not taxing the land used by the amusement park, but the buildings, equipment and vehicles, said county attorney Raymond Large, who cited a federal Court of Appeals ruling in a California case as basis for the tax. Non-Indian businesses or individuals operating on the reservation are subject to taxes of their personal property, Large said. In fact, Buchanan said, the majority of Jackson County businesses on the reservation are paying their taxes.

Lyons also contends in his suit that he was not given ample time to respond to the county's request for payment prior to his bank accounts being attached.

Buchanan denied that claim, saying that final notices issued to delinquent taxpayers give them two weeks to respond, and that Lyons is already getting away with not paying his taxes for eight years since state law only allow her to seek payment of back taxes up to 10 years in arrears.

Lyons was granted a temporary restraining order against the county, which was lifted March 29 when Superior Court Judge Marlene Hyatt denied a request for a preliminary injunction. The Cherokee businessman's requests for permanent injunction and declaratory judgment remain before the court.

Many North Carolina counties are engaged in efforts to collect back taxes, Buchanan said. Western North Carolina neighbors doing so include Haywood and McDowell counties, she said.

Back to Archive: 04/13/00.