Virtual Wall of Shame gets Minnesota bars to pay overdue taxes

Star Tribune

Last update: August 19, 2009 - 5:44 AM

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Sometimes, it appears, public shaming works.

That's what state revenue officials have discovered since they began electronically posting the names of bars and restaurants that aren't paying their taxes.

About 180 delinquent bars and restaurants owe the Minnesota Department of Revenue $7.7 million and can't sell their customers newly delivered beer, wine or liquor until they pay up.

SAVING FACE: However, in July, the first month the department has been publicly posting the names of the establishments, owners of 124 of them have coughed up their tax payments.

That has netted the state about $2.5 million -- not exactly chump change, but to put things in perspective, that amounts to less than 1 one-thousandth of the state's budget deficit.

OFFENDERS RUN THE GAMUT: The list of scofflaws contains few high-profile establishments, but ranges from expensive hotels in downtown Minneapolis to bowling alleys and VFW posts.

According to the department, the businesses listed were more than 10 days late in the filing or payment of their taxes. Once a business is on this list, alcohol distributors can't sell or deliver their product to the business.

The bars and restaurants can still sell any liquor, beer or wine they already had in stock. But they're prohibited from restocking and re-selling.

BOB VON STERNBERG

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