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A Douglas bar owner is facing charges for failing to pay city sales taxes.
Patrick M. Peterson, 55, the owner of PP’s Douglas Inn located at 915 Third Street in Douglas, is charged with 16 misdemeanor counts of violating the City and Borough of Juneau’s uniform sales tax code.
According to charging documents, Peterson failed to file a CBJ Sales Tax Return and remit the sales tax for periods in 2009 through 2011.
An affidavit filed by Assistant City Attorney August Petropulos states Peterson, and his corporation Peterson Pacific Holdings Inc., were given notice twice that Peterson had sales tax due.
Peterson was informed in May 2011 that he owed the city a total of about $20,937 in unremitted sales tax, penalties and interest for parts of 2009, 2010 and 2011. Notice was given in January 2012 that he owed a total of $13,933 for June, September and December of 2011, according to the affidavit.
The affidavit states Peterson failed to respond.
CBJ is seeking about $42,084 in restitution, the affidavit states. That includes the unremitted sales tax, penalties and interest.
Court records indicate a jury trial slated to begin earlier this month was vacated in lieu of a ‘change of plea’ hearing. That hearing is slated to take place in Juneau District Court before Judge Keith Levy on Oct. 5.
Peterson is represented by attorney John A. Leque. Peterson did not return phone calls seeking comment Friday.
Another business owner was charged and convicted of the same offense earlier this year. Larry Lee Lynd, owner of the Woolly Mammoth Gifts and Sourdough Larry’s, pleaded guilty to some of the charges against him and was ordered by the court in April to pay nearly $192,000 in unremitted sales tax.
The City and Borough of Juneau announced in an advertisement in the Empire on Friday that it is actively pursuing the collection of city sales taxes owed from all business owners in Juneau.
The newspaper ad listed all the businesses that are delinquent in filing and/or remitting of the tax, as of Sept. 12 of this year.
According to the report, 47 active businesses in Juneau owe a total of about $244,967 in sales taxes. The business that owed the most, according to the report, was Gold in Quartz, which owed $34,705.24.
Nine businesses that have closed their accounts with CBJ but still owe sales tax, owe a total of $52,920, the report states.
About 90 businesses failed to respond to requests to file sales tax returns, which is required under the CBJ sales tax ordinance.
The vast majority of businesses in the borough pay their city sales tax, which is collected by merchants in the normal course of business to be held in trust for CBJ.
Joan Roomsburg, the city sales tax administrator and signee of the advertisement, wrote in the ad that the businesses listed only represented a small minority of merchants in the borough. The amount of delinquent tax listed represents less than 0.08 percent of CBJ’s annual sales tax collections, the report says.
• Contact reporter Emily Russo Miller at 523-2263 or at emily.miller@juneauempire.com.
Comments (73)
Add commentLet's not forget
that this is the same person who had to sell the bar building in a real hurry several years ago to Bill Pierre, the Seattle car dealer. Word is that he lost a lot of money playing poker and needed to cover it quickly. I see he has now bought the building back.
I wonder where he got the money.....oh, wait.....
Paul
Should the creditor continue to extend credit to repeat offenders, or should they cut their losses early on, and put that customer on the cash and carry plan.
No cash, sorry, we no do business with you.
It is my belief that the CBJ is, and always has been far too lenient in this regard, it sounds like you're pretty much in the same boat.
Do you really think printing it on the front page, instead of elsewhere in the paper will change anything.
It's time for CBJ to hang the "We reserve the right to refuse service to anyone" sign above their door.
Pat always has had a "screw
Pat always has had a "screw you" attitude. It goes back to his childhood. I feel real confident that if Pat were to have his doors locked by the CBJ he would very quickly be able to "come up with the money." This nonsense about "working together" with him and allowing him to stay open and "work things out" is a lot of stupidity. Things like this just don't work with these kinds of people.
Deja vu...
If I'm not mistaken, it was this same Pat Peterson (along with his buddy Troy Portis) that was charged and convicted of illegally killing that black wolf found along Thane Road back in 2006.
And at the same time, (apart from the game violation) Peterson was being charged for his failure to pay the CBJ for several years of sales tax revenue collected at his bar. After a jury trial in 2008, a judge ordered Peterson to pay the city over $50,000 in fines and penalties, as well as placing him on probation.
According to this article, it appears that in less than a year Peterson again stopped paying the required sales tax - which would also seem to violate his court-ordered probation.
Looking even further back, the court records show that Mr. Peterson committed a similar sales-tax offense in 2003 and was fined accordingly.
I'm not sure what might stop this type of habitual behavior, but our current laws don't seem to be overly effective. Weren't there similar issues with several of our local pull-tab businesses just a few years ago? Does anybody know if that was every resolved, and/or if the delinquent back sales taxes were ever collected?
@IMA49ER
I believe I did not make my point clear, because I am with you. I am saying that it likely costs the City too much money to battle in court to take away their license; the City must play by rules that it and the State have set. Maybe these rules could be changed; if so they should be. However, the City should not spend (random numbers) $10,000 in court to retrieve $5000 from a business; but if they owed $20,000, the $10,000 court cost becomes less of an issue. Does that make sense? Sorry if I am still not getting my point across, but no I am not saying to keep lending as your example went. I am saying if the City's hands are indeed tied, we the community should not use that businesses services as hitting their pocket book would likely get their attention if they are trying to save money illegally already; it was really more of a view as a citizen rather than a potential Assembly member.
Mr. Nowlin: You seem to be very quick on the draw
to use the media for public humiliation.
I have never been comfortable with CBJ using the printed press to place their neighbors into public 'stockades' so the other kids can throw rotten vegetables.
The same practice is used on errant home owners for as little as $150. Should they also be on the front page?
The premise is two fold. Juneau is a small community and space is always available, and being a small community the CBJ gets more bang for their buck when the dirty laundry is aired for the neighbors to see.
I am less concerned about the .008% of sales tax revenue at issue here than I am regarding this community's willingness to skirt the legal process of collection in lieu of the more expedient avenue of bad press (only the government does this).
I have no problem with the legal ramifications of not paying owed taxes upon the homestead. It is the law.
Collecting taxes and not submitting same to the CBJ is a notch above...it is stealing.
What I have a problem with is one enterprise being singled out in the press for particular attention when, as you state, there are 40 others sailing the same waters.
Regarding the 'rotten vegetables' being thrown at Mr. Peterson: I do not know the man. But when I am not in the mood to subject my brain to mind-numbing levels of profane music, sexual acts on the dance floors, brawls on the sidewalk and police drama I have frequented the neighbor pub of Douglas where I do not have to yell to hold down a conversation and less likely to experience the same drama our good citizens seem more than willing to condone up and down the strip downtown.
If his business acumen is denying 'Mayberry' of sales tax revenue then by all means take all the necessary legal actions to procure same.
But I am not on board for questionable methods applied to save the city the legal costs of following due process.
P.S. I am less concerned about your views as a 'citizen'. My neighbor's views do not carry the same impact as your views as an assembly member.
@ Ken
Deleted
@ Ken
My first response was too long and off topic.
My intention was not to humiliate, but for the people of Juneau to not use a business that is passing their bills onto the rest of us. A shortfall in sales tax will have to be paid by us elsewhere; so it was not to save the City money, but you and I. I also agree that we should not circumvent due process.
I see your point about mixing in my "citizen" opinions while I am running for Assembly. I will take your wisdom, and refrain from doing so again. Thank you Sir.
I will start by staying off this articles forum from this point.
My intent was not to suggest you retreat into the same shell
other candidates do. In fact your willingness to have a dialogue on this forum is probably one of your biggest attractive qualities.
Do not feel you must address every point being made here.
I fully understand your intent was not to humiliate. You do not come across to me as a person insensitive to others.
"Point noted" is more than adequate.
The body of my comment was primarily targeted towards Juneau's mind-set regarding knowing everyone else's business.
@ Ken
I am not retreating into a shell, just refraining from this conversation since I already went astray. I am still reading what everyone is saying. I do not feel I have to address every comment to me, I just enjoy the banter. Plus, when I am wrong about something I would rather be corrected than go on being ignorant; and that cannot happen if I hide my thoughts, good or bad. Some things we learn by failing, I do not have a problem with that, and I do not purport to have all of the answers. I did not take your comment as anything but positive, and I enjoy your posts on other articles. Everyone in these forums have good points, whether we agree with them or not. And we all have bad points, and still others agree with them. I love the balance. Thank you again, Ken.
Excellent! Glad to know my ramblings were not taken wrong.
***
@ken
Also, I appreciate that you think it is good that I communicate well with the public. However, I hope it is not my only attractive quality [not that you said that], as I am not sure how many people are reading all of these comments. Thank you either way, but really it is my pleasure; and it is my intention to create better lines of communication between the public and the Assembly. Even though I enjoy listening to the Assembly meetings online, I can see how it would be pretty boring for most folks to sit through. I want to improve that, but I am still in the brainstorming phase as to how to pull that off. We will see Tuesday if I have made a big enough impact to get myself elected.
Time to file against renewal
The CBJ has the right to protest renewal of Pat's license, and should do so the next time it comes up for renewal. That would force him to pay, since the ABS is required to deny renewal if a municipality protests due to failure to pay taxes.
As the owner of 3 businesses, I pay the sales tax I collect for the CBJ on time. It's not my money.
Pat is a repeat offender, and CBJ should force him to sell the license to someone who will pay sales taxes on time.
Paul, I am sure it is not your only attractive quality.
The general public's perception of politicians, though, is generally known. I am a staunch supporter of citizen leadership and representation and all of the candidates meet this measure.
I am particularly attracted to fresh approaches.
Your willingness to put yourself out there is laudable. We have too many armchair quarterbacks (I am one of them).
Thank you for your candidacy.
this is about my dad
I just want everyone to know that this is all my fault and I never thought my daddy would go to jail. My dad is in debt for paying for my lawyer and we won full custody of my son. My father's intentions were good. He loves my son and I so much that he would give everything up. My dad does a lot for Juneau. He is the President of the Fourth of July Committee, sponsors the salmon derby every year, sponsors multiple sports teams, and built the ice rink on Douglas Island. Juneau would be a lot better place if more people were like my father. My father is guilty of being a great dad and a wonderful grandfather, who loves his family very much.
this is about my dad
I just want everyone to know that this is all my fault and I never thought my daddy would go to jail. My dad is in debt for paying for my lawyer and we won full custody of my son. My father's intentions were good. He loves my son and I so much that he would give everything up. My dad does a lot for Juneau. He is the President of the Fourth of July Committee, sponsors the salmon derby every year, sponsors multiple sports teams, and built the ice rink on Douglas Island. Juneau would be a lot better place if more people were like my father. My father is guilty of being a great dad and a wonderful grandfather, who loves his family very much.
Lock'em up! the doors, that is...or???
First off, not all bars have mind-numbing music AND sexual acts on the dance floor - sometimes there isn't a dance floor for those sexual acts! (LOL)
But hey, these folks who don't pay their sales taxes are taking vacations every year no doubt, and getting their PFD's no doubt and we're supposed to feel sorry for their employees as well? No, don't think so. That employee probably isn't getting treated very well either - have we thought of that? After all, the owner kept that sales tax money, he didn't pass it on to his staff as a bonus or anything, did he?
So perhaps for those folks who don't want the business shut down, how about we all go over for a few "HAPPY HOURS" and consume $48,000 plus in alcohol? (LOL) Personally tho, that wouldn't get me in those doors; but hey, the bartender and waitress will be working! And perhaps put cab rides home on the tab? I am surely not encouraging anyone to drink and drive!
Is this bar owner supposed to be paying taxes yearly or quarterly or? Hmm... we just finished 3rd quarter, has he paid anything yet THIS YEAR? Hello? (lol)
C'mon, put some big ones on and get the taxes paid, shut'em down if possible.
Otherwise, why should ANY business pay taxes at all? Hmmm.......
If one gets shut down...they all get shut down.
Not all of them will be bars.
erik: please do not take the comments on this forum
as the definitive personal slight upon your Dad's reputation. Know that the people who know him best is what counts.
I can personally relate to your Dad's choices.
Take comfort in the knowledge that your Dad will do what it takes to do what is right regardless of how the 'herd' will judge. You should be proud.
Deadbeat
Pat Peterson has money he hasn't even folded yet. His problem is he spends too much time on the wrong side of the bar. Louie never sat at the bar drinking. It's time to sell out and retire.
"list the business in the
"list the business in the paper that do not pay their taxes"
I think publishing debt is against the law.
I dont want to bash anyone's dad
Consider this....
communicate with the city, make payment arrangements, do not spend money that is not yours, practice accountability. Then....no newspaper story
Like I said before. Juneau loves drama.
Particularly if it regards someone else's business.
It's not 'drama'...
It's called breaking the law and folks are sick of it. The Petersons are an extremely rich family and it's quite apparent Patrick is not willing to pay their fair share. He did not 'build the ice rink' and if he is sponsoring so many sports teams and community events than why doesn't he pay his REQUIRED BY LAW SALES TAX first? It's a no brainer. He is stealing from you and I. Pay up or close shop.
Family values...??
I applaud Mr. Peterson's devotion to his daughter and her problems, but I hesitate to make them the scapegoat for all his sale-tax woes. Not to mention, his actions probably do not generate the best of family values.
In looking at court records, Mr. Peterson had similar sales-tax issues in 2003, and then again in 2008. Now, we're talking 2009 thru 2011. It doesn't take a genius to see an ongoing pattern here.
Mr. Peterson consistently fails to file the appropriate sales-tax information with, and/or remit already collected tax revenues back to the CBJ. This practice apparently goes on for several years with Mr. Peterson ignoring repeated warnings from the CBJ Revenue Dept. to pay-up... until the city is finally forced to take Mr. Peterson to court. He loses. The Court orders Mr. Peterson to pay his delinquent sales-taxes (which apparently he does), and then the process starts allover.
I'm at a loss as to what advantage Mr. Peterson gains from all this, but it definitely costs the CBJ time and money - not all of which is recovered. And of course, Mr. Peterson is assessed additional penalties by the Court. On the surface, it appears to be a Loss-Loss for both sides. So, why does Mr. Peterson keep doing this, and why does the CBJ allow it to go on repeatedly and for so long?
I certainly agree that taxes collected should not be
misappropriated. There are consequences.
But here is what's happening. One person is highlighted via CBJ. The press runs with it because it is news. Now anyone with a personal distaste or grievance with the individual goes off-page and publicly libels the individual under the cloak of anonymity.
Mr. Peterson's infractions do not leave the same bile taste in the back of my throat as those contributors to dialogue.
Where
is the article/list of delinquent business'es?
Well stated Ak_Jase.
Why indeed. Perhaps the City Attorney's office could use more staff and/or a clearer mandate to take the gloves off.
From what I gather in this forum
and from past stories in the Empire, Mr. Peterson doesn't give a rip for rules and regulations, and, more importantly, basic honesty. What I can't understand is the continuing acceptance of this behaviour on the part of his customers. This has been going on for years.
Douglas is a small community, and I would like to think that the residents would police their own. Instead, they seem to embrace it and actually enable it.
Perhaps the Douglas Advisory Committee should consider a motion advising Mr. Peterson to shape up or ship out. That this behaviour is perceived as acceptable doesn't reflect well on their community.
Or perhaps the residents should stop making all this possible by patronizing another establishment until Mr. Peterson decides to abide by the rules.
remember the sandbar?
When the sandbar owed taxes and didn't pay, the city seemed pretty quick to suspend the liquor license until the debts were paid.
http://www.kinyradio.com/juneaunews/archives/week_of_01-30-12/juneau_new...
Under: Eagle Nests on Assembly Agenda