Supervisor candidate missed 5 years of taxes

Rue Furch, a Sonoma County planning commissioner and candidate for the Board of Supervisors, failed to make property tax payments on her home five of the past seven tax years before paying an outstanding bill last month of $46,420.

Furch said her tax troubles don't reflect poorly on her ability to serve as a county supervisor.

"The qualifications I bring to this position don't change because . . . I went through an economic recession," she said. "My qualifications, my experience and my values aren't changed."

Furch and partner Scot Stegeman made no tax payments from June 2000 to June 2005 for their home overlooking Laguna de Santa Rosa north of Sebastopol on High School Road.

The couple bought the home in 1999 and agreed to an installment plan in June 2005, avoiding initiation of the county process for putting the property up for sale.

They made payments for taxes and penalties that year and in 2006 totaling $24,890. But the couple didn't make a payment by July 2007, and they faced the threat of sale of their property this year by the county.

The total payments for back taxes and penalties for the seven years totaled $71,310.

Furch, who in May announced plans to run for the seat now held by Supervisor Mike Reilly, said she and Stegeman were unable to pay the tax bills in the first five years because of a lack of income from their businesses. Stegeman is a land planning consultant and Furch a management consultant for nonprofit groups.

"Everyone hopes to . . . have the economic wherewithal to pay their taxes every year," Furch said. "And sometimes people can't."

Furch, a 16-year veteran on the county Planning Commission, is one of seven people who have filed papers with county election officials to run in the 5th Supervisorial District. The district includes the west county and part of Santa Rosa. The election is June 3.

On June 8, 2007, Furch's tax delinquency was listed along with others in a routine legal advertisement placed by the county in The Press Democrat. It subsequently became a topic of discussion among political observers, including some who do not share Furch's environmentalist stances.

Furch and county officials disagree on the facts regarding the installment payment due last April 10.

Both sides agree Furch and Stegeman sought and obtained an extension until June 29. But Furch said that after the June notice appeared in the paper, they were told they were no longer on the installment plan and had to pay all taxes due.

But Pam Johnston, assistant tax collector/auditor, said that despite the public notice, the county had given the couple an extension until June 29 and a payment by that date would have allowed them to remain on the installment plan.

Furch and Stegeman were able to make the December payment after obtaining a $120,000 loan from Dennis Hunter, a real estate investor who in 2005 was part of the record $100 million sale of land in Rohnert Park for a proposed tribal casino.

Furch said she obtained the loan through a real estate broker and never met with Hunter. If elected, she said, she would refrain from voting on any matter where it would appear she might have a conflict of interest involving the loan from Hunter.

Reilly, who will step down next year after 12 years in office, has contributed $1,000 to Furch's campaign. He said he has not made contributions to any other candidate but also has not yet formally endorsed a candidate.

Reilly said he was aware Furch had owed back taxes. He noted Furch resolved the matter and it didn't affect his view of her ability to serve as a supervisor.

"I look at who's going to take the best care of the 5th District," he said. He said Furch was "well respected" as a planning commissioner.

Rod Dole, the county's tax collector, said the county can sell a property after its owner has been in default for five years.

Typically, only about 2 percent of property owners fail to make routine tax payments on the due dates in December and April.

Dole said his department "collected every dollar owed to the county, plus penalties and interest," from Furch and Stegeman, and the couple "didn't receive any special treatment."

You can reach Staff Writer Robert Digitale at 521-5285 or robert.digitale@pressdemo

crat.com.