The owner of a Scandia convenience store that closed in February is alleged to owe the state more than $73,700 in unpaid sales taxes and penalties and interest.Ernest Vaala, who owned and operated Scandia Farm & Home, 14860 Scandia Trail N., is accused by the Minnesota Department of Revenue of collecting sales taxes from customers and not paying the tax to the state.
The revenue department recently revoked the storeís sales tax permit for failing to pay state sales tax.
According to state revenue officials, Scandia Farm & Home entered into a payment agreement with the state.
However, the agreement was breached when monthly payments were not made, state officials said.
According to the revenue department, the state sales tax is a ětrust tax.î Customers who pay sales tax trust and expect businesses to send it to the state on their behalf, officials said.
The state agency said sales tax dollars must not be used by a business as additional operating capital or for any other purpose.
If a person or company makes taxable retail sales in Minnesota after revocation of a Minnesota sales tax permit the action is considered a felony under Minnesota law.
Items like candy, soft drinks, snack foods, motor oil, tobacco products and many other non-food items are taxable.
As of the second week of March plans are pending for a new owner to take over operation of the Scandia Farm & Home convenience store on April 1.
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