Custer County Commissioner Accused of Tax Evasion Scheme

Transcript reveals Commissioner Bill Canda created septic business solely to avoid taxes

Apr. 12, 2026 at 6:09pm

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An extreme close-up of a broken septic tank lid reflecting a harsh, direct camera flash, conceptually representing the investigation into a county commissioner's alleged tax fraud.A broken septic tank lid, a symbol of the alleged tax evasion scheme by a local county commissioner.Alamosa Today

Custer County Commissioner Bill Canda has been arrested for alleged sales tax fraud after a Colorado Bureau of Investigation (CBI) interview transcript revealed he created his septic business, Talon Earthworks Inc., around 2010 solely as a tax evasion scheme. Canda admitted in the interview that he started the business to get a tax deduction, stating 'the best way to do that is to get a tractor and lose money'.

Why it matters

The case highlights concerns about public officials potentially misusing their positions for personal financial gain. As an elected county commissioner, Canda was entrusted to act in the best interests of his constituents, but the investigation suggests he may have been exploiting tax loopholes for his own benefit. This could undermine public trust in local government.

The details

According to the CBI interview transcript, Canda stated he created Talon Earthworks Inc. around 2010 as a way to get a tax deduction, saying 'the best way to do that is to get a tractor and lose money.' The Internal Revenue Service is clear that businesses created solely as tax shelters are illegal, as the societal goal of tax breaks is to support risk-taking entrepreneurs, not avoid taxes. Canda also allegedly used the business to write off work on his own home. When former Zoning Director Dorothy Carsten reported Canda's attempt to use the county's tax-exempt certificate to avoid sales taxes, Canda targeted her and eventually got her fired.

  • Canda created Talon Earthworks Inc. around 2010.
  • Canda was interviewed by CBI Agent Jon Price on December 4, 2025.
  • Canda was arrested on April 10, 2026 for alleged sales tax fraud.

The players

Bill Canda

Custer County Commissioner who allegedly created a septic business as a tax evasion scheme.

Jon Price

CBI Agent who interviewed Canda about the tax fraud allegations.

Dorothy Carsten

Former Zuster County Zoning Director who reported Canda's attempt to misuse the county's tax-exempt certificate.

Kevin Day

Custer County Commissioner who was informed about Canda's actions by Carsten.

Lucas Epp

Custer County Commissioner who was informed about Canda's actions by Carsten.

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What they’re saying

“I'm a contractor with, uh, septic systems. Just like anybody else out there. And I've been doing it for 12, 15 years. Okay. And, uh, I probably put in 12 or 15 systems. because it's, it, all I did was, uh, when I, um, got out of the Air Force, went to work for Lockheed Martin, and from there I went to lock, um, Raytheon as a, I was a director in both cases with budget lines and in the Air Force. I was a full Colonel. But anyway, I needed a tax deduction. The best way to do that is to get a tractor and lose money (emphasis added).”

— Bill Canda, Custer County Commissioner

“Okay. And so, she sent you the county's tax-exempt certificate, which you recognize as not being appropriate, but the manager . . . he said that's good enough?”

— Jon Price, CBI Agent

“That's right. That's all I need.”

— Bill Canda, Custer County Commissioner

What’s next

The judge in the case will decide on Tuesday whether or not to allow Bill Canda out on bail.

The takeaway

This case highlights concerns about public officials potentially misusing their positions for personal financial gain, which could undermine public trust in local government. It raises questions about the need for stronger oversight and accountability measures for elected officials.