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Monday, December 8, 2008

Towing & Vehicle Storage Industry Rob Texas of Sales Tax Money

Year after year, towing companies and vehicle storage facilities pocket for personal use or fail to collect, sales tax money that educates on public school children, not to mention, rebated back to local governments.

It's bad enough when a delinquent taxpayer goes a year without making any payment to the State Comptroller, when audited to determine how much is owed, taxpayer is given a 'break", by paying less than the original tax lien.

Example, Sales Tax Lien $65,000, after repeated appeals, payment plan of a $1000 a month for 12 months

I don't know about how people think, but utilizing State manpower hours to reach the conclusion that a taxpayer owes the State of Texas $65,000, then settles for under $15,000 is not amusing one bit.

I am firm believer that a business is responsible for charging, collecting and paying sales tax when warranted, but to do otherwise is unacceptable and not being forced to obey the tax laws is not sending good message.

I know for a fact, based on receipts provided to me by consumers, that vehicle storage facilities are not collecting the sales tax on the "Impound Fee", but are still required to pay it. Then vehicle storage facilities fail to pay the sales tax on vehicles sold at public auction to salvage yards.

Towing companies statewide that perform private property towing, are either selling or leasing the red and white towing signs, which are taxable, that are not being remitted back to the state.

A vehicle storage facility or towing company should not be allowed to renew their State licenses unless they provide a Comptroller Tax Clearance Letter. To allow these businesses or any business, to collect and not remit to the State, sales tax money, is just plain wrong.

Our state government has to step up to the plate to recover all the sales tax that has been pocketed by one of the most corrupt industries.