5-2700-10996-2

 

STATE OF MINNESOTA

OFFICE OF ADMINISTRATIVE HEARINGS

FOR THE MINNESOTA DEPARTMENT OF REVENUE

 

In the Matter of the Proposed Revocation of the Sales Tax Permit of Sportland Cafe, Inc., 9 North Smiley Road, Nisswa, Minnesota 56468-9515;  MN ID No. 1126160

FINDINGS OF FACT,

CONCLUSIONS AND

RECOMMENDATION

 

            The above-entitled matter came duly on for hearing before Administrative Law Judge Steve M. Mihalchick, on April 7, 1997, at the Office of Administrative Hearings, 100 Washington Square, Suite 1700, Minneapolis, Minnesota.  The record closed in this matter at the close of the hearing.

Wayne Sather, Staff Attorney for the Appeals and Legal Services Division of the Department of Revenue, 10 River Park Plaza, St. Paul, Minnesota  55146, appeared on behalf of the Department of Revenue (Department).  Mark Pearl, Owner, appeared on behalf of the Sportland Cafe, Inc., 9 North Smiley Road, Nisswa, Minnesota 56468-9515 (Respondent).

 

NOTICE

            Notice is hereby given that, pursuant to Minn. Stat. § 14.61 the final decision of the Commissioner of the Department of Revenue shall not be made until this Report has been made available to the parties to the proceeding for at least ten days, and an opportunity has been afforded to each party adversely affected to file exceptions and present argument to the Commissioner.  Exceptions to this Report, if any, shall be filed with the Commissioner of Revenue, James L. Girard, 10 River Park Plaza, St. Paul, Minnesota  55146.

 

STATEMENT OF ISSUE

Should Respondent’s sales tax permit be revoked for failure to failure to file sales tax returns as required by Minn. Stat. §§297A.27, 289A.11, and 289A.18; and failure to pay Minnesota sales tax as required by Minn. Stat. §§ 297A.26 and 289A.20.

 

Based upon all of the proceedings herein, the Administrative Law Judge makes the following:

            FINDINGS OF FACT

1.     Respondent is a small business in Minnesota, holding Minnesota sales and use tax permit number 1126160.  Respondent is making retail sales and collecting sales tax on those sales.

2.     Respondent has not filed a sales tax return for December, 1995.  Exhibit 4, at 2.  Respondent has failed to pay the full amount of sales taxes collected from January, 1996, onward.  Id.  At the date of the hearing in this matter, the total amount of taxes identified in Respondent’s returns as unpaid and overdue was $28,568.

3.     Respondent had not entered into a repayment agreement with the Department to pay the amount owed as of the date of the hearing.

4.     The Department issued a Notice of Intention to Revoke Sales Tax Permit to Respondent on January 15, 1997.  Exhibit 2.  Respondent requested a hearing on February 14, 1997.  Exhibit 3.  The Notice and Order for Hearing in the matter was issued on March 4, 1997.

Based upon the foregoing Findings of Fact, the Administrative Law Judge makes the following:

CONCLUSIONS

1.     The Notice of Hearing is proper as to form and content and all other procedural and substantive requirements of statute and rule have been duly complied with.

2.     The Department and the Administrative Law Judge have jurisdiction over this matter under Minn. Stat. §§ 297A.07 and 14.50.

3.     Respondent owes the Department at least $28,568.00 as of the date of the hearing for sales taxes, penalties, and interest.

4.     Respondent has failed to file sales tax returns for several months and owes additional amounts to the Department for sales taxes, penalties, and interest for those months.

5.     Respondent is obligated to file sales tax returns within one month of the month in which the tax was collected by Minn. Stat. § 289A.11.  Respondent is obligated to pay the sales tax owed by the twentieth day of the month following the month when the tax was collected under Minn. Stat. § 289A.20, subd. 4.

6.     As of the date of the hearing, no plan for repayment of the taxes owed had been entered into by Respondent and the Department.

            Based upon the foregoing Conclusions, the Administrative Law Judge makes the following:

 

RECOMMENDATION

IT IS HEREBY RECOMMENDED: that the Commissioner of Revenue revoke Sales Tax Permit number 1126160 held by Sportland Cafe, Inc.

 

Dated this

28th

day of

 April,

1997.

 

                                                                             

 

STEVE M. MIHALCHICK.

Administrative Law Judge

 

 

Reported: Taped, not transcribed.

 

NOTICE

Pursuant to Minn. Stat. § 14.62, subd. 1, the Agency is required to serve its final decision upon each party and the Administrative Law Judge by first class mail or as otherwise provided by law.

 

MEMORANDUM

            Respondent does not dispute the amount owed to the Department or that several sales tax returns have not been filed.  Failure to pay sales tax owed and to file appropriate returns are grounds for revoking a sales tax permit.  Respondent expressed interest in undertaking an installment payment plan to eliminate these arrears.  The Administrative Law Judge is issuing this Recommendation in the event that no repayment plan is worked out.

S.M.M.