About half an hour south of Nashville is the college town of Murphreesboro. In the downtown are some small businesses. One of them is a diner.
State tax collectors shut it down in a raid. They were there to collect $180,000 for two months’ sales taxes. The sales tax rate is just under 10%. The owner points out that this indicates that the diner makes $1,000,000 per month.
The raiders were by law required to provide 10-days’ notice before a raid. They apparently forgot.
The owner has been in a dispute with the state about what he owes. He was given no warning of the raid.
According to the Department of Revenue’s website, there are a variety of state-issued business taxes that are required, from sales taxes to employee taxes. It is unknown what exact amount the state is attempting to collect.
“We cannot comment on the case,” said Billy Trout, communications manager for the Dept. of Revenue. “I can say that there are multiple steps that take place (prior to collections /seizure procedures), that often the propietors are let known in writing. But each case is a little different.”