Collecting The Hamburger Tax

FRIDAY SEPTEMBER 11, 2009

City considers collecting unpaid hamburger taxes

By Greg Rayburn / Editor / grayburn@sherwoodvoice.com

While the vast majority of city restaurants pay their 2-percent hamburger tax to the city of Sherwood, some persist in falling behind and not paying.

Alderwoman Sheila Sulcer, who also chairs the Sherwood Advertising and Promotions Commission, said city leaders are coming up with a plan to make all Sherwood restaurants pay their 2 percent tax.

“I have been advised that the city has the right to audit restaurants,” said Sulcer.

Sulcer’s comments were made on Sept. 2 at what was supposed to be a meeting of the Sherwood Advertising and Promotions Commission. A lack of a quorum made it impossible to hold a meeting. However, she made available the A&P’s Commission’s budget through the end of August which showed payments from restaurants totaled $55,488 last month.

The report indicated three city restaurants were in violation of their tax obligations.

One former violator, Zaxby’s Restaurant — which was taken to court in the spring for non-payment of the tax for about five months — has been catching up on its back due balance. According to the August report, Zaxby’s paid $1,689.59 in hamburger taxes.

In March, Zaxby’s was taken to the Sherwood District Court for the non-payment of the tax. As a result of the hearing, Zaxby’s agreed to keep current, plus play on the past balance.

According to citation forms given to restaurants accused of not paying the tax, the city to charge a 25-percent surcharge on overdue taxes.

Earlier this year, Sulcer said she was hopeful the state would assist Sherwood in auditing and helping to collect the owed funds. However, state auditors said they had no right to audit Sherwood restaurants for non-payment of the hamburger tax. If the city wanted to conduct its own collection program, it had that right.

According to its August budget, the commission had a balance of $178,570. The commission paid $1,058 for beverages handed out during the fourth of July celebration and $4,500 for the fireworks display.


http://www.nlrtimes.com/articles/2009/09/11/sherwood_voice/local_news/nws05.txt