The state originally thought the Ramsey City Council member and Anoka businessman owed $649,000 in unpaid sales tax.
Ramsey City Council Member David Elvig owes the state $100,000 in unpaid sales tax -- less than one-sixth of the $649,000 the state once thought he owed, according to an agreement Elvig reached with the Department of Revenue.
Elvig is the founder and president of E-Street Makers Inc. of Anoka, a high-end custom furniture and cabinet-maker that was shut by state order after its sales-tax permit was revoked last year. The state said Elvig owed $648,928.90.
Elvig contested that amount and asked for a review.
Last month, the department determined that Elvig owes $104,005.47. Even that amount may be contested by Elvig, who says he was "forced to sign an agreement" for fear the department would otherwise charge him with owing the original $649,000.
Elvig, the longest-tenured member of the Ramsey council, said he is seeking a hearing with the Minnesota Court of Appeals to see whether he can challenge the state's "extraordinary" tactics that led to his signing the agreement.
Meanwhile, Elvig faces 24 counts of theft and is accused of embezzling $19,596.83 from his employees' 401(k) and group health and dental plans. He has pleaded not guilty to the charges. His trial is scheduled for January.