Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, May 17, 1990 TAG: 9005170186
SECTION: BUSINESS PAGE: B-9 EDITION: METRO
SOURCE: Associated Press
DATELINE: SPOTSYLVANIA LENGTH: Medium
Pizza USA in Spotsylvania County was closed at 1 p.m. Tuesday, said Alice Wells, a spokeswoman for the Virginia Department of Taxation.
The business owes $3,442.88 in back taxes, interest and penalties, Wells said. A lien was filed in Spotsylvania Circuit Court on Feb. 12. She said the owner has made arrangements to pay the money and could reopen the business.
Ferdinando Nicolosi, co-owner of four Pizza USA restaurants in the Fredericksburg area, said the company was only $400 short on its taxes and someone was on the way to pay when the state shut the door.
"We were a little bit behind. They try to make a big show of it," he said. "All this wasn't necessary."
The three other area Pizza USA locations were not a target of the tax department's action, officials said. The four restaurants have opened within the past year.
The padlocking law went into effect April 1. The first round of tax department letters of intent to padlock businesses went out April 13.
So far, 90 businesses have been notified that they are in danger of being shut down, Wells said.
The process works this way: After a business has been notified that it owes back taxes, it is sent a final demand for payment. A hearing is scheduled no less than 10 days later.
At the hearing, the business can either pay its debt and any subsequent penalties or post a bond.
If the company does not appear or arrange payment, the door is padlocked by the local sheriff and an order is posted on the door.
Even after the door is locked, the owner has a final, three-day period to pay up, Wells said.
"The goal is not to close people down, but for us to collect payment due the commonwealth," she said.
Nicolosi said he and the stores' co-owner, Tomaso Rizzo, have paid the tax bill and their restaurants will be open as usual. But Nicolosi said he was bitter about the way the state handled the case.
"We want to sell everything out of this state and get out of here because I never heard of such a thing," he said.
"I'm going to stay in the business, but I'm not going to spend one more penny in the state no more. I'm going to find a state that's more understanding."
by CNB