Report: Russo owes $132,481 in California taxes

Friday, Feb. 27, 1998 | 12:37 p.m.

CARSON CITY -- Aaron Russo, a Republican governor candidate, owes $132,481 in back taxes to the state of California, according to the California State Franchise Tax Board.

Russo denies that he owes the money, saying the figure is an accounting error.

"This whole thing's a crock," Russo told the Reno Gazette-Journal. "Just because they say something doesn't mean they're right."

A lien for unpaid state income taxes totalling $128,207 was filed in February 1994 in the Los Angeles County recorder's office.

When interest is added, the figure tops $132,000.

Russo said his accountant phoned California officials and told them the lien was in error, but the accountant never heard back from state officials. Russo, a former Hollywood producer, said the accountant assumed the lien was withdrawn.

In recent weeks, questions also have arisen about Russo's residency.

Russo has said he moved to Nevada in August 1996, but he didn't get a Nevada driver's license until March 1997.

During that period, Russo drove with an Ohio license that had expired in February 1996.

Nevada law stipulates that new resident must apply for a license within 30 days.

Russo is challenging Las Vegas businessman Kenny Guinn in the Sept. 1 GOP primary.

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