Kansas Department of Revenue
THURSDAY UPDATE: Budget Host Villa Inn and Suites and the Kansas Department of Revenue have reach an agreement on a payment arrangement, the state announced Thursday afternoon. The business assets have been released, and the business, which was closed Monday, reopened.
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Monday’s original story:
TOPEKA – On Monday, Kansas Department of Revenue agents and Ellis County Sheriff’s officers seized the business assets of Vigneshvarai LLC, doing business as Budget Host Villa Inn and Suites, which owed $85,849.02 in state sales and transient taxes.
Officers seized all known bank accounts, on-site cash, business inventory and personal property assets belonging to owners Dimpal Patel and Vijay Patel. The hotel at 810 E. Eighth was sealed closed, and the assets will be sold at public auction to pay the taxes owed.
Warrant execution occurs when all other collection attempts, including multiple letters, telephone calls, letters of impending legal action, tax liens filed with the local District Court to secure the debt, previous bank levies and on-site till taps are executed to bring the taxpayer into compliance have been exhausted.
Only after several unsuccessful attempts does the department take the action of seizing assets, which in this instance resulted in the business being closed.
The Revenue Department’s standard practice is to continually encourage delinquent taxpayers, who are not lawfully filing or paying taxes — such as sales or withholding — to voluntarily enter into a repayment agreement.
Tax Warrants:
Sales Tax – 14ST1 – Ellis County – July 2011 through July 2013 – $40,419.28
Sales Tax – 14ST46 – Ellis County – Aug. 2013 through Jan. 2014 – $7,587.03
Transient Guest Tax – 14ST2 – Ellis County – Feb. 2011 through May 2013 – $30,909.73
Transient Guest Tax – 14ST47 – Ellis County – June 2013 through March 2013 – $6,932.98
Total taxes owed: $85,849.02
According to Kansas Department of Agriculture inspection reports, Budget Host had 49 licensed rooms, but several had been shuttered.
According to an August inspection report, eight rooms were voluntarily taken out of circulation following an inspection.