First-Ever Tobacco Distributor's License Revoked; State Simultaneously Revokes Shop's Sales Tax Permit
The Minnesota Department of Revenue recently revoked the tobacco distributor's license and the sales tax permit from a Brainerd tobacco shop for failing to file state tobacco and sales tax returns and pay the tax owed, the department announced today. It i
The department alleges that Teresa Starr, 109 Washington St., doing business as Smoke Shoppe & Book Nook, owes the state more than $8,000 in tobacco tax, and nearly $4,000 in past due sales tax. Both amounts include tax, penalty and interest.
According to revenue officials, Starr entered into a tobacco tax payment agreement with the state; however, the agreement was breached when monthly payments were not made. As a result, the Minnesota Department of Revenue seized tobacco products including cigars, specialty cigarettes, smoking tobacco and related smoking paraphernalia to help satisfy the tax. Simultaneously, the state revoked Starr's sales tax permit. No payment plan was signed regarding sales tax.