Sarah Palin – Tax Cheat? Contents of Mysterious Envelope Revealed. (UPDATED)
3 02 2010It was a few weeks ago, and it was a day like most days. I was having my first cup of coffee, settling in at my desk, and my eye landed on a stack of mail. On top of the stack was an envelope, and on the envelope was my name, hand written. I didn’t see a return address in the corner, so I flipped the envelope over to see who had sent it. Nothing. Two stamps, and a Juneau postmark. That was it. Curious.
Before I tell you what was in the envelope, a little background is needed. First, we’ll need to wind the clock back to 2006. Sarah Palin is running for governor of the state of Alaska. She’s running against former governor Tony Knowles, a Democrat. So the DNC, unlike John McCain or the Republican party, decided that it would be to their advantage to vet this unknown Republican candidate for governor. Nobody knew much about her. She’d been mayor of Wasilla, and ran an unsuccessful campaign for Lt. Governor, but they wanted to know more. When the McCain campaign “vetted” Palin they ended up with a couple Google articles, and a YouTube video. When the Democrats were finished with her, they had a 63-page document. There were lots of interesting things in the document, including this.
Pg. 48/63 Palin Declined to Appear in Ads for A Candidate Because He Had Not Paid His Property Taxes.
In 2004, it came to light that Republican Rep. Vic Kohring owed the borough $2,277 in unpaid property taxes on property he owns off Knik-Goose Bay Road, according to borough records. “That bothered former Wasilla Mayor Sarah Palin enough that she declined a campaign request to do a pro-Kohring TV commercial. As a former mayor, Palin said, it made her uncomfortable to back someone with unpaid taxes when the city relies on property taxes.” [Anchorage Daily News (Alaska), 10/28/04]
It was things like this that really made Sarah Palin stand out as a gubernatorial candidate. Republicans in the state were sick of the corruption that was running rampant in their own party, and they wanted change. They wanted a “fresh face” who had new ideas and ethical standards. They wanted someone who was actually bothered by a public official who would cheat his community by passing his personal tax burden on to others.
Recently, Sarah Palin gave an interview to Bill O’Reilly and said her favorite vacation spot was “The middle of nowhere at our cabin in Petersville,” Alaska.
And now we get to the envelope. Inside the envelope was an unsigned letter which read:
Todd and Sarah are now millionaires, but they shirk their responsibility to pay local property taxes.
Attached are printed copies of Matanuska-Susitna Borough tax assessments from the public website (address shown at the bottom) regarding two lake frontage properties the Palins own in the Petersville Hills. Safari Lake is a gorgeous location, with stunning views of Mt. McKinley and the surrounding terrain.
Please note that two parcels total almost 20 acres and are assessed for a total value of $30,000. Also, there is a $0 value regarding any buildings on the property.
Any photos or visual inspection of the properties would clearly reveal that there are two large “cabins” on the property that are well built, and include thousands of dollars worth of improvements and amenities. The buildings are clearly nicer than many people’s homes.
Also on the property is a large shop for snowmachines and four-wheelers.
These buildings have been on the property for years now – yet the Palins have done nothing to correct the assessment.
The letter was followed by two copies of Matanuska-Susitna Borough tax assessments for the parcels of land in question showing records for the years 2007, 2008, and 2009. You can see the documents online HERE and HERE.
This photo, recently obtained, shows one of the buildings on the property. It was taken about two years ago.
There was another reference to property taxes in that vetting document from 2006. It talked about an inner struggle Palin had with whether or not to support a property tax cap. She talked to the Anchorage Daily News.
Pg. 15/63 Palin Called Herself “Such a Weasel” For Not Having a Firm Stand on the Property Tax Cap.
Palin said she has declined requests by Tax Cap Yes to speak in favor of the initiative. Yet, she said, she doesn’t object to her name’s continuing to be listed on the group’s Web site among 10 current or former government officials — half from Mat-Su — in support of the initiative. Palin acknowledged that she was sounding quite the politician. ‘I am so sorry I’m such a weasel,’ she said.”
[Anchorage Daily News, 10/8/00]
Maybe Palin finally figured out how to solve her dilemma of indecision – pay the taxes on the land, but cap the taxes on improvements at zero. Brilliant!
Update: Thanks to the folks at PalinGates for catching my appearance on The Shannyn Moore Show.
UPDATE:
This story has now been picked up by the Associated Press – HERE
Also, on NBC affiliate KTUU-Channel 2 in Anchorage – HERE





















February 4th, 2010 at 5:46 PM
This story has now hit AP! Yeah, and apparently the assessor will be checking on it.
February 4th, 2010 at 5:54 PM
I think Al Capone was also busted for TAX EVASION…..tee..hee…
February 4th, 2010 at 6:09 PM
My thought about the Palins’ Lake Lucille property is that since it is on a paved road with easy access for the Assessor, something may be afoot with the Assessor’s office. Yes, it is SP’s duty to apprise them of errors, but someone with easy access (the Assessor) needs to be keeping the “honest” folk honest. It is not like no one knows about the building going on in Sarahville.
February 4th, 2010 at 6:17 PM
The HuffPo report says that the assessor did an aerial survey of the property. They should have photos of it, and will be able to have square footage estimates and such from that. And of course, her attorney is saying its the assessor’s fault for not knowing it was there. No way was it Sistah Sarah’s fault.
This is getting interesting! The train-wreck that keeps on giving (sorry for the mixed metaphor, but it’s how I think of her!).
February 4th, 2010 at 6:25 PM
This will probably hit the tee vee tomorrow. I can’t wait for her FB Ghostwritten response/excuse/lame explanation.
February 4th, 2010 at 7:09 PM
I’m quite p!ssed that the AP story is on HuffPo’s ‘front page’, not AKM. Anybody wanna help me get those AP-readin’ people the truth?
February 4th, 2010 at 7:24 PM
I’m so pleased a bunch of us mudflats fans posting AKM’s posting links on HuffPo. We need to keep it up – the AP article is far too short and lacking details, pictures, and the great research AKM did to break this fantastic story.
February 4th, 2010 at 7:25 PM
#247 @ Alaska Pi Says:
February 3rd, 2010 at 8:04 PM
@240 Duct Idaho Palin Says:
February 3rd, 2010 at 7:53 PM
If that “land use permit” stuff is good law …
(D)A land use permit is not required where commencement of construction or placement, as defined in MSB 17.125, occurred before the effective date of the ordinance codified in this chapter.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Soooo, if. . .land use permit is NOT required where commencement of construction or placement occurred before the effective date of the ordinance, which apparently is 2007, then. . .documents would have to be provided to the effect that they were done BEFORE said date – No? So they would need documentation – invoices, receipts for materials, and suchlike – nails, windows, um, plywood, etc. And if these documents cannot be provided for one reason or another, then how do they (Palins and Richter) prove the prove when these “cabins” were built and if they’re legal?
February 4th, 2010 at 7:36 PM
Where I come from, there’s a reason why one doesn’t have to report buildings added to formerly empty, but taxable, property. It’s because when one adds buildings, one acquires appropriate building permits. Those permits are forwarded to the taxing body and a tax assessor looks at the buildings to assess value before an occupancy permit is granted. Tax assessments usually also play a part in how an insurer writes a property insurance policy. Don’t you folks in Alaska have requirements like that? If you do, then she should also be fined for breaking three or four other laws.
Congrats to the AK Muckraker for breaking another story — and many thanks to the sender of the mystery envelope!
February 4th, 2010 at 7:52 PM
I still have not figured out who owns lot 11. Why do they own lots 10 and 12 but not 11? No one owns 11? However, at some point there was a document called a Patent signed from 2004 on lots 10 and 11 together that says the lot’s grantee was a woman named Janet Henkel from Wasilla and the grantor was the State of Alaska. Then in 2007 is the quitclaim deed removing Richter’s wife.
I can’t figure out when the property went from Henkel to Richter and where on earth lot 11 went.
February 4th, 2010 at 7:59 PM
I didn’t see a direct post of the link for Google maps, so here it is:
http://maps.google.com/maps?f=q&source=s_q&hl=en&geocode=&q=safari+lake+ak&sll=37.0625,-95.677068&sspn=34.808514,56.337891&ie=UTF8&hq=&hnear=Safari+Lake&ll=62.456075,-150.577208&spn=0.002481,0.006877&t=h&z=17
You can toggle between satellite view and map view to see the building versus the lot. This one is lot 10. I looked on lot 12 but could not see any buildings there.
Anyway, there were lots of stories about a flyover to “verify the buildings” seems to me that google maps is a lot simpler, although maybe they got close enough on the flyover to actually try and asses the value
February 4th, 2010 at 9:37 PM
1,500 comments on the HuffPo site!
(ds55) <<=== big numbers impress me
February 4th, 2010 at 9:38 PM
Jennifer – Here’s a link for the sale, recorded 3/5/04, from Janet Henkel to the Palins and Richters.
http://dnr.alaska.gov/ssd/recoff/sag/DocDisplay.cfm?SelectedDoc=20040003590&District=321
February 4th, 2010 at 10:00 PM
@ curioser: They bought two lots for a total of ten dollars? What the… ?
February 4th, 2010 at 10:19 PM
I wouldn’t be surprised if Kristin Cole were involved in this as an “advisor”. As a real estate person, she knows all the ins and outs of getting around things. This is from someone who bought a house from her.
February 4th, 2010 at 10:20 PM
Regarding the new house in Wasilla, the Assessor is probably doing the new appraisals since it was only built late last year. Usually the appraisal is the value as of Jan 1. A lag time is not unusual.
I noticed AKM’s diary on the front page this morning in the left column. AP must have gotten the idea from that unless they are reading the flats, also too? Anyways glad to see this go viral since it is real news.
February 4th, 2010 at 10:20 PM
Glad this story is getting legs.
February 4th, 2010 at 10:36 PM
From the HuffPo/AP story:
“This is another blatant attempt to manufacture a story about the Palins following more defamatory swipes,” Palin’s spokeswoman Meghan Stapleton said in an e-mail to The Associated Press.
She’s baaaack!
February 4th, 2010 at 10:49 PM
Congratulations AKM!!
Whilst I listened to the first part of the radio interview with SM I heard you say that the envelope was given to you and the newspaper records had $P’s quote, so there wasn’t much work involved………something like that.
It is much more than that……you should take a bow, accept some praise!
We readers realize how humbling It must be to be the person trusted with “the envelope”.
Alaska, as you have said “is a small town”.
People trusted you to do your well-known due diligence with this story.
You should feel comforted to know that you do such a good job, folks have that kind of faith in you.
The bloggers in Alaska have a great synergy, while maintaining uniquely talented and interesting “offerings” .
It is just wonderful that Ms. Moore has her radio program up and running!!
I hope she and her guests are appreciated. I think of her as Maddow North.
It is amazing however small a radio station or program may be……..it helps take a good story to a national level.
Congrats again as I picture you taking a much deserved bow………………..
February 4th, 2010 at 10:54 PM
Henkel purchased lots 10 & 11 for $12k in October 2001.
http://dnr.alaska.gov/mlw/appraise/detail.cfm?auc=411&par=120
February 4th, 2010 at 11:02 PM
Correction for my #201 comment about the Alexander Creek property – Using a different browser I was able to look at the actual quitclaim deeds. The deeds show that Todd was given a PARTIAL interest in the property and NOT 100% as I suspected. I don’t know whether Brad Hanson has an interest or not. I’m so sorry if I sent anyone off down a wrong street.
February 4th, 2010 at 11:07 PM
#313 ds55 – They likely paid a bunch more than $10. There would also be a purchase or sales agreement with the total sales amount that is not a public document and not recorded. The $10 is just what shows on the deed…$10 and other valuable consideration. Common practice.
February 4th, 2010 at 11:10 PM
Yay, AKM!!! I see that you are mentioned on the msnbc story as the source of this latest information about Ms. Palin. Made me smile and giggle. Cool. I’m glad she’s finally being called to account for her sneaky-snake-in-the-grass behavior.
February 4th, 2010 at 11:20 PM
I posted this on Huff Po on Rachel D’oro’s “ditty”.
She really , as the English say……………… gets on my tits!!
We shall see if it makes it past the moderator.
Congratulations on taking this story from Jeanne Devon AKM Mudflats and the AP to make it “your own”.
Jeanne Devon broke this story yesterday……..
Funny how you qualify the Mudflats blog as “critical” of Palin, (it is about so much more than SP) and Palin as writing a “best selling memoir” and recently signed on “FOX news, (you actually refer to FOX as news, even when Rupert denies it!) commentator.
So we have the person who broke this story as a “critical blogger” and Palin, your subject matter as some type of success.
I suppose when the best you can do is regurgitate day old news, you must be dismissive of the the original author whilst elevating the controversial (to say the least) person the story is about.
Link to yesterday’s breaking news from Jeanne’s post here at Huffington:
http://www.huffingtonpost.com/akmuckraker/sarah-palin—tax-cheat-c_b_448137.html
February 4th, 2010 at 11:22 PM
Congratulations on taking this story from Jeanne Devon AKM Mudflats and the AP to make it “your own”.
Jeanne Devon broke this story yesterday……..
Funny how you qualify the Mudflats blog as “critical” of Palin, (it is about so much more than SP) and Palin as writing a “best selling memoir” and recently signed on “FOX news, (you actually refer to FOX as news, even when Rupert denies it!) commentator.
So we have the person who broke this story as a “critical blogger” and Palin, your subject matter as some type of success.
I suppose when the best you can do is regurgitate day old news, you must be dismissive of the the original author whilst elevating the controversial (to say the least) person the story is about.
Link to yesterday’s breaking news from Jeanne’s post here at Huffington:
February 4th, 2010 at 11:37 PM
This is a very significant scoop!
February 5th, 2010 at 1:03 AM
@ 323 curiouser Says:
February 4th, 2010 at 11:07 PM
#313 ds55 – They likely paid a bunch more than $10. There would also be a purchase or sales agreement with the total sales amount that is not a public document and not recorded. The $10 is just what shows on the deed…$10 and other valuable consideration. Common practice.
+++++++++++++++++++++++++++++++++++++++++++++++
Janet Henkel purchased lots 10 & 11 for $12k in October 2001.
http://dnr.alaska.gov/mlw/appraise/detail.cfm?auc=411&par=120
Laast I knew, husband Tom runs T & J Gravel Products in Palmer.
February 5th, 2010 at 1:23 AM
Just hearing the news. Haven’t been to huffpo yet. Congrats AKM – I hope you get the credit for this.
February 5th, 2010 at 1:54 AM
@323 Martha..
Your post at HuffPo made it through the moderators.. Good job…:)
.
February 5th, 2010 at 3:52 AM
Hi Mudflats! Just found your blog by reading the BIG AP STORY about Sarah Palin’s “cabin(s)”. Folks, this is huge news, and congratulations for breaking the story.
I live in Southern California, and this type of tax-assessment problem/non-payment on improved property would land someone in jail in a heartbeat. Here, any building you do, even a patio, has to be signed off by the City’s engineering and building departments, all building inspections done on a timely and rigorous basis, etc. Quite complicated, but easy enough if you follow the rules. OF COURSE, all of this construction information is instantly sent to the county tax assessor’s office. Ta-Da…you now owe property taxes on the improved lot according to square footage of home, as well it should be.
Here’s my latest worry: Now that the Palins are “millionaires” (don’t get me started on that), won’t they just pay the delinquent taxes, and the problem will vanish? Or, will “intent to deceive” need to be proven, since it doesn’t seem apparent that any attempt was made to inform the assessor’s office that the buildings were signed off for habitation? Or even existed at all?
I reiterate: This is huge news, and congratulations, Alaskans, for bringing this new outrage to light. The entire USA is now watching the story…yes, this story definitely has “legs”.
February 5th, 2010 at 6:59 AM
Don’t you need a building permit in Alaska? Were these ‘cabins’ built legally?
February 5th, 2010 at 8:10 AM
The Palins are crooks.
February 5th, 2010 at 10:24 AM
Thanks curioser. I am now really confused, though, because everything else implies that the Palins and Richter don’t own lot 11 anymore. I can’t find lot 11 on http://www.matsugov.us/myproperty/list.aspx?Choice=subdiv&searchParm=2357. Did lot 11 become PART of lot 10 or 12 or both? If so, would that have needed a new deed of some sort?
Also, I just think it’s WEIRD that they would share ownership of two (plus) lots. Why not each family own their own lot? So they all own a lot and all own two houses on one lot and nothing is built on the other lots? That doesn’t make sense. I also wonder who is there when they aren’t there? It would be interesting if they rent it out and don’t report a profit… TOTAL speculation on my part, of course.
Does ANYONE still have their tax returns? Every link I have tried goes to McCain’s campaign site and it’s now his Senate re-election site. I’d really like to see how many properties they have on there for deductions.
February 5th, 2010 at 11:07 AM
I think this earns AKM a spot on the Daily Show with Jon Stewart!
February 5th, 2010 at 11:29 AM
Jennifer – Confusing, indeed! For some reason the tax assessment doesn’t show all the lots detailed in the deeds. Lot 10&11 were deeded together to the Palins and the Richters. What shows as lot 12 on the tax assessment includes lots 12, 13 & 14 on the deed.
Links for the tax returns are in a comment about 1/2 way down this page.
http://palingates.blogspot.com/2010/02/breaking-news-jeanne-devon-mudflats.html#dsq-comments
February 5th, 2010 at 11:30 AM
FYI… I can’t find my comment
…..to let you know that the largest building ‘cabin’ on Safari Lake for over 15 years has a name… The Todd Mahal
February 5th, 2010 at 12:30 PM
[...] Then the Governor of Alaska, Sarah Palin was tabbed to be John McCain’s running mate in the 2008 Presidential Election in October. Nonetheless, the precocious child held incredible sway in the Alaska government throughout the year, notably when she made sure that her “Mommy & First Dude” didn’t have to pay taxes at a vacation lodge the family owns in the Matanuska-Susitna Borough of Alaska. [...]
February 5th, 2010 at 12:38 PM
I found this in the “emails” released today. This really shoots down VanFlein’s first attempt of blaming someone else:
http://www.crivellawest.net/pdf/970.pdf
From: gov.sarah@yahoo.com
To: Todd ; Mason, Janice L (GOV); Perry, Kristina Y (GOV)
Sent: Mon Mar 10 04:12:22 2008
Subject: APOC
I’m going to sumbit my APOC disclosure forms asap, they’re due in a few days, so I’ll need the
camapign-recived gift list that discloses those items worth (whatever the amount it)… I believe it’s
held in both the Anchorage and Juneau offices?
Also, Todd- what’s the # for SmithBarney so I can get a list of all your 401 K plan holdings. And did
Bristol and Willow get paid for comm fishing in ‘07? How much? And who were the fish buyers last
season? And no changes in properties bought/sold last year, correct? The buying/selling took place
in ‘06, 1 believe? And legally Deb Richter’s name is off the cabin property, correct?
February 5th, 2010 at 3:41 PM
Can someone please search those e-mails for the word ‘retarded’…
February 5th, 2010 at 10:29 PM
If you get on GoogleEarth and search on Safari Lake Alaska, the resolution isn’t as good as on Google Earth that was supplied in #311above (thanks!), but if you zoom in there are photos (marked by blue boxes) from two properties nearby that show how stunning the views of Mt. McKinley are from that area.
That said, Sarah is a tax cheat, a liar, and a fraud (but we already knew that) – and she’s afraid of the drug junkie (Limbaugh). Every day, in every way, people are learning what a fraud she is.
Keep it going, AKM!!!