The Haines Borough has made progress on collecting back sales tax from three delinquent business owners it reported owed an estimated $229,000 in July 2014.
The borough voted in July to authorize the municipality’s attorney to file suit against the Mosquito Lake lodge The Funny Farm, Community Waste Solutions/Haines Sanitation, and the food stand Hog Heaven.
According to the borough’s calculations, Funny Farm owner Bruce Bauer owed the borough an estimated $165,000. As the Funny Farm had never filed a tax return, the estimate was based on information about the number of rooms and room rates obtained from visiting the lodge’s website.
Chief fiscal officer Jila Stuart said the Funny Farm is currently up to date with its sales tax payments but still owes penalty and interest.
Stuart would not say how much Bauer ended up paying the borough, citing a confidentiality clause in borough code.
In July 2014, the borough estimated CWS owed about $36,000 in back taxes based on previous tax returns. Stuart said CWS is currently all paid up.
Hog Heaven has made “some progress” on payments, Stuart said, but is involved in litigation with the borough. The borough estimated Hog Heaven owed $28,000 in back taxes.
According to court records, a district court judge ruled in August 2014 that Hog Heaven owed the borough more than $24,400.
The borough also last year filed suits in small claims court against Tlingit Ink and Horizon Plumbing for amounts less than $10,000.