Controller Asks Help to Recover $1 Billion in Overdue Taxes

State Controller Gray Davis on Thursday named a panel of business and labor executives to find ways to recover more than $1 billion in delinquent taxes and to return more than $300 million in unclaimed property to its rightful owners.

On the panel, which will be chaired by Sanford C. Sigoloff, chairman of the board of Wickes Cos. Inc., and includes University of California President David P. Gardner, are several of Davis’ biggest campaign supporters and campaign contributors.

“We need new ideas to collect old debts,” said Davis, making it clear that he intends to be a highly visible occupant of the relatively obscure elected post he assumed fewer than four weeks ago.

At press conferences here and in Los Angeles, Davis, who serves on the Franchise Tax Board and the Board of Equalization, said he is looking for innovative approaches to speed up the collection of more than $1 billion in delinquent taxes, including the $40 million a year written off by the state. He also complained that for 18 months the state has been unable to collect $11 million in royalties owed the state by oil companies because of inaction by the U.S. Department of Interior.

He also promised to take on the complicated task of returning more than $300 million in unclaimed cash and property held by the state, which recovered it from abandoned bank accounts and other sources.

Davis said the task force will report back to him in 90 days on ways to improve the operations of the controller’s office and the 36 boards and commissions on which he serves.

Sigoloff is a familiar figure to television viewers who have seen him ordering his employees to cut prices in commercials for his corporation’s building supply and furniture stores. With a reputation as a tough, ambitious executive, he is one of several members of the group who has backed Davis politically. Campaign records show that Sigoloff donated $2,000 to Davis in his run for office last year.

While not all the task force members contributed to Davis, those who did gave a total of $53,350, according to a listing of contributions compiled by Legi-Tech, a campaign reporting service.