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Defunct Minneapolis bar owes state $126k, loses sales tax permit

The Minnesota Department of Revenue claims Drink Inc., a bar and restaurant in Minneapolis that closed earlier this year, failed to pay sales taxes between March 2003 and January 2007. The defunct business still owes the state more than $126,000. A new pub has opened in the former Drink location in downtown Minneapolis.
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ST. PAUL, Minn – The Minnesota Department of Revenue recently revoked the sales tax permit of Drink Inc., doing business as Drink, for failing to pay sales tax to the state. According to the department, the business owes the state more than $126,000.

The department claims the restaurant and bar, located at 510 First Avenue North in Minneapolis, failed to pay sales taxes between March 2003 and January 2007.

Minnesota sales tax is a “trust tax.” Customers pay sales tax with the expectation that the businesses will send them to the state on their behalf. Sales tax cannot be used by a business as additional operating capital or for any other purpose.

If a person or company makes retail sales in Minnesota after their sales tax permit is revoked, it is considered a felony under Minnesota law.

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