Thursday, May 23rd, 2013

Armed Police Raid Tennessee Diner Looking for $180,000 in Back Taxes… For Two Months Worth of Sales

Samantha E. Williams and Gannett Tennessee
Tennessean
May 25th, 2012
Reader Views: 231

“These men came in with badges around their necks and kicked my customers out. It was like a police raid,” Perkins said of the proceedings Wednesday morning.

Lunch diners were disappointed to be greeted by a closed sign and several postings stating City Cafe was closed because of “nonpayment of Tennessee State taxes by virtue of a levy issued by the Department of Revenue, Tax Enforcement Division … ”

“I had an interesting cup of coffee this morning,” said Henry Phillips of Henry’s Florist shop, located at the corner of Church and East Main streets. “Just after 9 this morning, they asked us to leave. They waited until the bulk of people had completed their meals and then ushered us out.”

Perkins took over the 100-plus-year-old business in 2007. The downtown restaurant, touted as being the “original meat-and-three” place in the city, is at 113 E. Main St.

“I had no idea this was coming,” Perkins said. “They did not alert me.”

The Department of Revenue requires businesses to pay sales tax based on the income of sales made. Perkins said the state is asking for $180,000 for two months. Based on the 9.75 percent sales tax in Murfreesboro, that would account for more than $1 million in sales made at the restaurant.

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Contributed by Samantha E. Williams and Gannett Tennessee of Tennessean.

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