Archive for Tuesday, August 10, 2010

Tonganoxie business served warrant on back taxes

August 10, 2010

The Kansas Department of Revenue served a tax warrant Tuesday on a Tonganoxie business that owes roughly $132,000 in delinquent sales taxes.

Freda Warfield with KDOR said the department conducted a “till tap” at B&J Country Mart and BP gasoline station, 319 Ridge St. Till tap is a method in which Revenue officials seize money from a business’ cash registers and safe to pay toward the unpaid taxes.

Warfield said a portion of the back taxes was retrieved but she could not release the exact amount of money collected Tuesday because of confidentiality laws.

The warrant was filed at 8:10 a.m. Tuesday in Leavenworth County District Court. KDOR was seeking delinquent sales taxes from December 2009 through April 2010.

“It’s not something frequently done,” Warfield said about the till tap, noting she was not sure when the state previously conducted such an exercise. “We do that over a complete seizure or closing down a complete business.”

She stressed that Revenue officials themselves did not close the grocery store or nearby convenience store during the procedure. She said normally two to three agents are involved in a till tap, though she did not have an official number of agents on hand Tuesday. She also didn’t have information about whether employees or customers were present at the time Revenue officials issued the warrant.

Instead of conducting till taps, Warfield said the department would prefer having a taxpayer enter into a repayment program.

In general terms, Warfield said a business that undergoes a till tap would next get in touch with the Department of Revenue to resolve delinquencies and normally a pay plan is established.

Owner Jim Gambrill could not be reached for comment Tuesday.

Comments

Trouble 3 years, 8 months ago

I hope the store don't close. That will hurt the city not have a grocery store. Everyone needs to help him out and start and continue shopping at our local grocery store. Support your local businesses.

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mymonkey 3 years, 8 months ago

B & J grocery provides over half the sales taxes in town. If they go under the stupidity of the council in blowing a million dollar reserve will haunt this town for years. Tea party time in Tongie. We need mass reginations of all council members and the city administrator. New blood is needed as they have failed miserably. This is how close we are to a financial meltdown in the city. What if the store burned God forbid? People better pay attention.!! Hope the store does not fail.

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straightup 3 years, 8 months ago

I agree that we as Tonganoxie citizens needs to support our local businesses. But the stupidity comes from raising the sales tax to build a new swimming pool and that was voted by us citizens of Tonganoxie! I'm sure all businesses are hurting from this move. I would hate to see the store go under but this also fall back on the stores owner. Apparently he or someone hasn't managed the store to well. $132,000 that alot of sale tax. When I shop we pay for sale tax. There should be no problem to keep the sale tax separate and then pay the state. I do think the city council has made some bad discussion no doubt about it. But the stores delinquent sales taxes is not the city's fault.

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mymonkey 3 years, 8 months ago

I agree the stores trouble is not the citys fault. My point was that the perilous condition of revenues was not considered by the city. Now we are on thin ice and a small change in sales tax revenue could have devastating effects.

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rosehumm 3 years, 8 months ago

For the store, this was a result of 'robbing Peter to pay Paul'. When the choices are to restock inventory, pay employees, repair the parking lot, etc. etc., taxes are usually the first thing to push aside. It is apparent when one enters this store that it is a shoestring operation as the inventory is often meager and choices limited. If every person in the area who drives to another town to shop on a regular basis would instead shop at B&J at least one or 2 of these trips, it could make a big difference. I remember when Tongie had 3 grocery stores and about 1/3 the population. Now we spend our money for gas so we can 'save' in more glamorous venues. It's also very possible that this summer some folks who thought they were boycotting bp managed instead to hurt this local business. It will be a hardship on the community in many ways if we lose our grocery store. Everyone of us should 'put our money where our mouth is' and support all our local businesses (and each other) if we want this to be a vibrant community. Remember a vibrant community keeps all our property values up, our schools well funded, our services superb and on and on. That is the way we can afford to enjoy our water park, skate park, beautiful downtown, smooth streets, etc. By the way, I hope the store people got wind of this warrant and managed to empty the cash registers before the 'tap'!

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teatime 3 years, 8 months ago

You really think it's OK to not pay your taxes? Especially sales taxes? Money that has already been collected? Where I went to school, that could get you sent to Leavenworth.

It's nice to see this town sympathetic for a change, though. I'm not sure throwing out the city council and administrator is going to help save the grocery store, but I am all for supporting local businesses, and I do. But, they in turn need to run their businesses in a responsible manner. Especially now, Uncle Sam is just as money hungry in this recession as the rest of us. Now, how the government is going to spend that money is a WHOLE 'NOTHER SUBJECT!

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showinquarters 3 years, 8 months ago

I do not believe that it was the city's fault. Sales tax is raised to give the residents new things to keep them here in town (for example, the pool). When you or I go into a place of business and pay for items, we pay the sales tax. That money needs to be set aside and paid to the IRS.... the owner of a store is not to keep that money and use it for "fun stuff" until all bills are paid. Every store pays a lesser price for items and then sells it for a higher price.... the difference between those two costs pays for employees, utilities, upkeep, etc..... sales tax monies are not to be used for those things HOPING that "something " will come through when the sales tax is due. Businesses need to pay attention to their business plan and their budgets..... Not paying your sales tax to the IRS is NO ONE'S fault besides the store owner ---- and some fault of those who do not take advantage of their city's grocery store or other stores!!!

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tongiredneck 3 years, 8 months ago

One wonders if he didn't pay sales tax to the state, did he pay the taxes of his employees to the Feds? That ads up big time.

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Old_Vet 3 years, 8 months ago

B&J has fired baggers/stockers for drinking soda at the soda fountain. Now they stole from the state $132,000!! That is not an accounting error, that is willful criminal behavior. I think a stay at Norton Medium Security facility may be in order.

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