Kansas owes this former pizza magnate $63 million. Why won’t the state pay up?
Kansas has a multi-million dollar problem with Gene Bicknell, and wishful thinking won’t make it go away.
Bicknell, who once lived in Pittsburg Kansas, is often described as “colorful.” He’s been an actor, a candidate for office, a philanthropist. He once wrote a book entitled “Never Fry Bacon in the Nude.”
But he’s best known for owning a chain of pizza restaurants — at one time, he laid claim to more Pizza Huts than anyone in the nation.
Bicknell decided to sell his pizza business in 2006, which is when the trouble started.
Bicknell moved from Kansas to Florida in 2003 and claimed he owed no Kansas income taxes on the sale. The state disagreed. Kansas said Bicknell was still a resident and owed the state $42.5 million in back taxes, penalties and interest for income earned in 2005 and 2006.
The dispute festered. Eventually, Bicknell paid the tax bill, which had grown to $48 million. Kansas, which was in the middle of a budget crisis, spent the cash. He sued.
Years passed. Lawyers argued. Laws changed. Finally, in March 2019, Bicknell got a ruling from a judge: The pizza magnate had indeed lived in Florida during the relevant period, and Kansas needed to return his money.
The state now owed Bicknell more than $48 million.
That’s a big chunk of change. Kansas hemmed and hawed, scuffed the dirt, and put its hands in its pockets. The state hasn’t written the check.
This week, Bicknell said enough is enough. In a letter distributed to media outlets, he claims he’s now owed more than $63 million in refunds and interest, and he wants his money.
His language is, uh, colorful. Words like “lunacy,” “abhorrent” and “intolerable” are used.
“They will say and do anything to deny me justice,” Bicknell says. “I want the money that is rightfully mine returned to me.” That seems reasonable.
The governor’s office did not return a request for comment. In this case, that’s not only frustrating, it’s expensive.
Each day the dispute goes unresolved, Kansas owes Gene Bicknell more money, to the tune of about $200,000 a month. It makes a terrible situation worse.
The extra cost might be defensible if the state had a visible strategy to win the case on appeal or a cogent argument to deny the refund. If there is such an argument, the public has no idea what it is. Kansas appears to be hoping Bicknell, who is in his late 80s, will just go away.
Like a leaking roof or a soggy basement, though, ignoring an expensive problem won’t make it disappear.
Residency is a fluid legal concept. In this case, a judge examined the evidence and decided Bicknell lived in Florida, which has no state income tax. Kansas must abide by that decision or else explain to taxpayers why the state is still throwing money away.
The Kansas budget, like most state spending blueprints, is in shambles because of COVID-19. The state should approach Mr. Bicknell now, publicly, and see if he’s amenable to a settlement somewhat south of $63 million, or if the debt can be paid over several years.
He should consider agreeing to such a deal. The state’s stubbornness will make it harder, of course, but it’s worth a try. An apology might help.
This dispute should end. Another two or three years of state inaction, and the debt could approach $70 million or more. Kansas taxpayers should not be required to pay that kind of money to pursue a case the state has lost.