Tax lien filed against ex-owner of utility

A lien for nonpayment of state corporate income taxes was filed last month against the former owner of the Diamondhead community’s water and sewer utility.

The Arkansas Department of Finance and Administration filed a $107,432 lien against Riviera Utilities of Arkansas Inc. for unpaid 2012 and 2013 corporate income taxes. The company sold the utility to Lake Catherine Waterworks and Sewer Facilities Board in May 2012 for approximately $317,000, according to the deed transferring ownership of the real property.

The current owner is a nonprofit public facilities board formed subsequent to the approval of the Garland County Quorum Court in 2009. It retained the name Riviera Utilities as its business designation and serves about 1,800 people in and around Diamondhead, according to the Arkansas Department of Health’s most recent survey of the Hot Springs water utility.

Hot Springs sells water wholesale to Riviera. According to the survey, Riviera customers had an average daily demand of 148,000 gallons last year.

Lake Catherine Waterworks and Sewer Facilities Board CEO Jack Plumlee said Thursday that an Arkansas Natural Resources Commission loan financed the nonprofit’s purchase of the utility, with revenue from ratepayers securing the debt.

In August 2012, the state released three liens for nonpayment of corporate income tax it filed against Riviera in September 2009. The liens totaled more than $160,000. It’s unclear if they were paid in full, as the Arkansas Tax Procedure Act prevents the state from providing information on specific tax liens.

Plumlee said part of the ownership group for Diamondhead Resort Community, Inc., one of the largest landowners in Diamondhead, owns Riviera.