No sales are allowed when taxes are owed

  • Updated: November 19, 2011 - 4:26 PM

Twenty-eight businesses were shut down in the second and third quarters of 2011 for failing to pay sales tax owed to the state, according to the Minnesota Department of Revenue.

There were 278 businesses on the state's "revoked sales tax permits" list at the end of September, which is 97 more than were on the list twelve months prior.

Collectively, they owe $12.9 million, up from $7.2 million at the same time in 2010.

Once a business that normally charges sales tax is placed on the list, it can no longer collect sales tax and therefore must shut down. A name is taken off the list only after the full amount owed is paid.

The following are the 10 businesses added to the list in the second and third quarters of 2011 that owed the highest amount of taxes, penalties and interest at the time of their permit revocation.

1 Verndale Custom Homes Inc., Verndale, owed $243,271.83 at revocation on April 14.

2 C. H. Carpenter Lumber Co. Inc., Lakeville, owed $191,825.20 at revocation on May 5.

3 African Food Processing Co. Inc., doing business as African Food Market, Champlin, owed $136,193.65 at revocation on Aug. 18.

4 Todd Erickson, doing business as Summit Amusement, St. Paul, owed $100,241.71 at revocation on May 26.

5 KnockOut Products LLC, Inver Grove Heights, owed $93,508.55 at revocation on Aug. 25.

The business sold cleaning and odor-removal products.

6 Fetch Inc., Minneapolis, owed $78,725.45 at revocation on April 24.

One of the company's registered addresses matches that of fetchdelivers.com, a pet food and supplies delivery business.

7 Heartland Power Sports Inc., Outing, Minn., owed $58,644.80 at revocation on Sept. 8.

8 Jennifer Anne Auctioneering Inc., doing business as Shakopee Auction Center, Shakopee, owed $49,793.91 at revocation on Sept. 8.

Chief Executive Officer Jennifer Sexton told Whistleblower in September that she sold the business in July to Minnesota Auction Advantage. State records indicate her son owns that business. A number of customers have alleged Jennifer Sexton's business failed to pay them for items sold at auction.

9 RMD Consulting LLC, doing business as DeMarce & Associates, Prior Lake, owed $48,728.46 at revocation on Aug. 4.

According to its Facebook page, the consulting firm specialized in funeral homes.

10 Scott B. Cunningham, doing business as Trail Lawncare, Inver Grove Heights, owed $46,693.52 at revocation on May 19.

Hard Data digs into public records and puts a spotlight on rule breakers in Minnesota. Contact me at jfriedmann@startribune.com.

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