State Closes 2 Domino's Pizza Shops For Unpaid Sales Tax

The Arkansas State Department of Finance and Administration says two stores in Pine Bluff owes $167,000 in state and local sales tax and that doesn't include hamburger tax.
PINE BLUFF, AR -- The state is cracking down on businesses that aren't paying their sales tax.

The state closed two Domino's Pizza Restaurants in Pine Bluff on Friday. The Arkansas State Department of Finance and Administration says both stores owe $167,000 in state and local sales tax, and that doesn't include hamburger tax.

"These monies would've been collected from their customers as they purchased food and merchandise from their stores, so monies were collected. They just weren't sent into the state," said Tom Atchley, State Dept. of Finance and Administration.

Atchley said the businesses were originally issued closure orders as far back as 2011, but the company went through bankruptcy.

"The companies operated under the bankruptcy laws, so they've continued to operate until they've violated that," said Atchley.

Now the state is waiting for the company called BL Pizza LLC to pay the $167,000 in addition to about $90,000 in hamburger tax for the city.

"It's not their money, that's what has to be understood here. It's the taxpayers money," said Pine Bluff Mayor Debe Hollingsworth.

Hollingsworth explained the effects this could have on her town.

"It reduces the amount of services, it reduces the ability to advertise and promote our city," said Hollingsworth. "It affects the convention center because a large part of our monies go to promote our convention center."

Now the state and city hopes the company can pay up or establish a payment arrangement.

"If they do not pay to work with us to resolve this matter, then the business will remain closed and we'll go from there," said Atchley.

A call to the company was made, but we have yet to hear back.

So far this year, the state shut down about 23 stores for not paying sales tax. Once the business pays it, it can reopen.
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