Wednesday, February 3, 2010

15 businesses stiff Ketchum

Some are a year behind in paying sales taxes


By TREVON MILLIARD
Express Staff Writer

Fifteen Ketchum businesses have been hoarding city sales taxes for themselves and stiffing the city out of the money it's owed.

This money is supposed to be handed over every month but some of these businesses haven't made a payment in more than a year, effectively stealing from the city.

"This is not their money," said City Clerk Sandra Cady, who's in charge of collecting the taxes. "It's the city's. They're collecting it for us."

The city charges a 2 percent sales tax on lodging and by-the-glass liquor sales, and a 1 percent tax on retail sales and building materials for something called "local option tax." It's also called the "tourist tax" because the city adds it to common tourist commodities. That's done because tourists put an extra toll on city streets and infrastructure. The taxes are then used for maintaining city services and streets.

City Attorney Stephanie Bonney said at Monday's City Council meeting that the city has been "lax" on this and needs to step up enforcement. That's exactly what Cady's asking for. She said some businesses are also operating without a tax permit, which is illegal. She's contacted them several times to no avail. And she can't do much else on her own.

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The City Council sent a clear message at Monday's meeting that this won't be allowed anymore, and unanimously voted to step up enforcement.

Bonney said the city ordinance already has the "tools" in place for enforcement.

These 15 businesses now stand to have their permits revoked if they don't pay up. When that permit is revoked, the business isn't allowed to continue operations. If it ignores that, it could be fined $300 every month that its doors remain open.

Cady said permits weren't previously revoked because the city wanted to be lenient in light of a troublesome series of events—the 2007 Castle Rock Fire, floods and the recession—putting businesses at risk. Some businesses took a mile with the inch they were given.

If a business doesn't pay the back taxes it owes, the city can also place a lien on the property for the amount owed.

And, Bonney said, the city "needs to follow through."

Councilman Baird Gourlay said that's exactly what he intends to do.

"It's not their money," he said.

Trevon Milliard: tmilliard@mtexpress.com




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