State, county tax officials go after Rusty’s Southside Grill

State, county tax officials go after Rusty’s Southside Grill

By Ashley Luthern

aluthern@vindy.com

BOARDMAN

Rusty’s Southside Grill was closed Thursday after receiving a notice from the Ohio Department of Taxation about its tax troubles.

A pink notice from the state had been posted on the restaurant’s front door Wednesday. Another sign next to it from the owner stated that Rusty’s Southside Grill was closed for a one-day renovation and would reopen Thursday.

But owner Rusty Johnston, contacted by The Vindicator Thursday afternoon, would say only, “We’re not doing business today,” and said before hanging up that the eatery was not open.

The Ohio Department of Taxation posts such notices on thousands of businesses each year, said department spokesman Gary Gudmundson.

“The reason they get posted is because of failure to file or pay sales tax either over a two-month consecutive period or three months during a 12-month period. The posting effectively prohibits the business from making sales,” he said.

In Ohio, the sales tax applies only to food and beverage consumed on premises where it’s served, he added.

“That sign stays there until all of the outstanding tax obligations are fulfilled,” Gudmundson said.

He said there is no way to get a dollar amount of sales tax owed because that part of the tax return is confidential by law.

Locally, Rusty’s Southside Grill owes nearly $95,000 in current and delinquent property tax, according to records from the Mahoning County Auditor and Treasurer Offices.

The county treasurer collects property taxes from the year before, and currently Rusty’s must pay a total of $21,782.99 by Aug. 5 for its 2010 property tax. Records show the company already missed its first payment of $11,410.14 in March and likely will receive a penalty fee.

The county sold the business’s delinquent taxes to American Tax Funding, a national bulk-sale purchaser and servicer of delinquent property tax liens, in December 2008, 2009 and 2010.

A representative with American Tax Funding said the business owes $73,200.71, which includes 18 percent interest.

Delinquent property taxes would not cause a business to be shut down, said a representative with the county treasurer’s office.