It’s been updated: The list of Top 500 Sales and Use Tax Delinquencies in California is out, and one former Santa Maria business has steadily crept up the list over the last few years.
Despite closing in 2007, the Ashley Furniture Homestore, formerly at 1318 South Broadway, is listed as delinquent on its Sales and Use Tax to the tune of $519,752. That’s only 0.1 percent of the total $484.4 million in delinquent taxes California businesses owe to the state, but the government still sees it as nothing to take lightly.
Once an individual or company falls delinquent on sales and use tax, the California Board of Equalization (BOE) has several methods at its disposal to recover the money. In the case of the former Ashley Furniture in Santa Maria, the board couldn’t release information to the Sun regarding what actions have been taken against business licensee J.H. Burrell Enterprises due to taxpayer confidentiality.
In 2007, the state passed legislation requiring a list of the top 250 businesses or individuals who were delinquent on paying sales and use taxes. In 2011, the law was amended to require a list of the top 500 businesses owing more than $100,000 in taxes. Since the listings began, California has recovered $12.2 million in delinquent taxes from 145 individuals and businesses that have been publicly listed.
Entities that owe the state are informed 30 days before their name is posted on the list; that way, there’s a little time to pay the debt. According to a press release from the California State Board of Equalization, delinquents will be removed once they begin making payment arrangements, file bankruptcy, begin litigation, or appeal the finding.
Board representatives deferred questions from the Sun to Publication 54, which details the various aspects of delinquent tax recovery. The state, for instance, has a right to place a lien against the personal property of the delinquent entity.
“It is not our policy to seize and sell your primary residence, but we will enforce the lien on your residence if you sell or refinance your home,” Publication 54 states.
The publication adds that liens aren’t the only way the state can recover owed taxes; it may also levy personal property. A levy differs from a lien in that a lien allows the state to recover dollars owed after the sale of the property, whereas a levy allows the state to seize the property itself to satisfy the debt.
The state can also issue Till Taps or Keeper Warrants to recover owed taxes. With a Till Tap, the Board of Equalization issues the California Highway Patrol or the local sheriff a warrant to enter the business and gather receipts or the contents of the cash register. When the board issuers a Keeper Warrant, authorities are authorized to leave a representative at the place of business to collect the proceeds from an entire day.
Other actions the state can take include revoking business licenses, driver’s licenses, and alcohol sale permits.
The Sun was unable to get in touch with J.H. Burrell Enterprises for comment; one contact number was no longer in service and another is now the number for an electric company. Ashley Furniture’s corporate office didn’t have contact information for the licensee.
This article appears in Sep 11-18, 2014.
