ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Sunday, October 27, 1996               TAG: 9610280069
SECTION: VIRGINIA                 PAGE: C-3  EDITION: METRO 
DATELINE: RICHMOND 
SOURCE: Associated Press

RESTAURANTS OWE $5.5 MILLION IN LATE TAXES

About eight of every 100 restaurants and bars in Virginia are behind in their sales tax payments, according to the state Department of Taxation.

With penalties and interest, the businesses owe the state an estimated $5.5 million, said Robert Schultze, the department's assistant commissioner for compliance.

``We have 1,166 restaurant and bar delinquent accounts statewide, out of 14,600,'' Schultze said.

Virginia collected $2.58 billion in sales tax in fiscal 1996. Of that, about $274 million was from restaurants and bars.

The sales tax is Virginia's second largest source of income after the income tax. The department relies on monthly collection reports from businesses, due by the 20th of each month and covering the previous month's sales. A notice is sent if the report is late.

The state has no fixed rule on taking legal action against a business behind in its tax payments.

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