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January 25, 2011

Missouri Department of Revenue Asks Court to Close KCI Area Hotel Until It Abides by State Tax Laws

JEFFERSON CITY – The Missouri Department of Revenue has filed an injunction to close a hotel near Kansas City International Airport for operating without a state sales tax license and failure to pay state and local sales taxes.

 The petition for injunction, filed Monday in Platte County Circuit Court, asks for the closure of the Comfort Inn (located at 11100 N.W. Ambassador Dr. in Kansas City) until its management begins to abide by Missouri tax laws.

 “Tens of thousands of Missouri businesses legally operate with up-to-date business licenses and pay the taxes that are owed,” said Alana M. Barragán-Scott, director of the Missouri Department of Revenue.  “It’s not fair to those businesses when others try to skirt the law and avoid paying the taxes that are due.”

 The injunction was filed against MCI Airport Hotels, Inc., which is the corporation that operates the hotel.  The registered agent for the corporation is George Pate of Jefferson City.  The corporation has owned the hotel since April 2010.

 According to the injunction, the corporation did not obtain a state sales tax license before it opened for business, as required by state law. By the time the corporation did apply for sales tax license in August of 2010, sales taxes were already due, thus making it ineligible to obtain a license until the taxes were paid. 

 The corporation’s current outstanding state and local sales tax liability is $40,787.44.  Of that amount, $30,778.44 is the unpaid state and local taxes from June, July, August, October and November of 2010.  The remaining $10,009 is the penalty and interest for operating without a state sales tax license.

 The injunction specifically asks the court to direct the corporation  to keep the hotel closed until it pays the taxes that are due, posts a sales tax bond and submits an application for a valid sales tax license.  Circuit Court Judge Owens Lee Hull, Jr. has ordered a Feb. 2 hearing to determine if the Department’s request will be granted. 


 The Missouri Department of Revenue is now on Twitter!  Go to the Department’s Twitter page at http://twitter.com/MoRevenue to follow the Department.