In the ongoing effort to collect the prepared food ("hamburger") tax, the Conway Advertising and Promotion Commission has drawn a line in the sand concerning one local restaurant CiCi's Pizza.
At its July 1 meeting, the commission voted to authorize the city attorney's office to send a letter declaring the board's intent to revoke the restaurant's A and P permit, according to Kurt Meredith of the city attorney's office.
Proceeds from the prepared food tax are to be used for the acquisition of park land and green spaces in the city. According to Barbara Money, accountant for the A and P Commission, CiCi's has owed taxes for several months. The city began collecting the prepared food tax in November 2005. CiCi's owes for November 2005; January through April 2006; June, August, September and December 2006; January through May 2008, Money said.
CiCi's Pizza owner Vaughn Badenhorst met with the A and P Commission in October 2007 and set up a payment plan for his back taxes, Money said. At that time he owed $17,801 including penalties and interest, she said. He was to pay the amount in 15 monthly installments, she said.
"He made two of the 15 payments. He hasn't made any more. He still owes basically all of it because it includes interest," she said.
During that time, Money said, Badenhorst paid taxes for February through October 2007. The A and P Commission filed a lien for the back taxes he owed.
"He paid the tax for 10 months and then just quit again," she said.
Each time a tax payer misses a payment, they receive a reminder letter from the A and P, followed by a certified letter. Filing a lien is one measure the A and P can take to ensure that taxes are paid.
"It's an involved process. It's not like they can vote and go shut the doors. They've got plenty of opportunities to take care of it before it gets to this point," Money said. "This is really the only one that's had to go this far."
Meredith said within 10 days of receipt of the letter, the taxpayer is to request a hearing with the commission regarding why the permit should not be revoked. If the taxpayer does not appear at the hearing, that is grounds for the commission to revoke the permit, he said. Once the permit is revoked, the taxpayer can file an appeal with Faulkner County Circuit Court.
"If the permit is revoked and they continue to operate their business without a permit, the commission can sue them in circuit court to enjoin them from continuing operations," he added.
Reached at the restaurant on Thursday, Badenhorst said he had no comment.
A and P Commission member Shelia Whitmore said, "We did everything we could and acted in good faith, but they have chosen not to continue in good faith. It's not fair to all the people who take the money and put it in another account and remit it, because it's not their money. They should not be using that as operating funds. I think people need to understand when they're collecting this tax, they should set it aside to be disbursed. It's not operating funds for the business. (CiCi's) said they were having financial difficulties. I don't believe there was ever a question of them not collecting the funds."
(Staff writer Rachel Parker Dickerson can be reached by e-mail at rachel.dickerson@thecabin.net or by phone at 505-1277. Send us your news at www.thecabin.net/submit)
