Plan to pay tax debt OK'd
The Butler Parks, Recreation Grounds and Facilities Authority agreed Thursday to enter into a six-month payment plan to pay off nearly $15,000 in unpaid state sales taxes from the concession stand in Kelly Automotive Park and $2,000 in penalties.
The Department of Revenue revoked the authority’s license to operate the concession stand and wouldn’t issue a license to operate a cafe, but the agreement allows the authority to open both.
The license to operate the stand and park store, which has been converted into a cafe, are in the authority’s name, but the Butler BlueSox operated both facilities under a rental agreement with the authority and was supposed to pay the taxes, officials said.
“The BlueSox rented the concession stand from us. The BlueSox should have paid the sales tax. The BlueSox didn’t pay a dime,” said Cherie Readie, authority chairwoman.
Bob Graham, authority board member, said the amount of unpaid taxes owed to the state is $14,679.
“We can’t open until that amount is paid,” Graham said before the motion to enter into the payment plan was unanimously approved.
Graham said the authority has paid the $6,370 that it owes in sales taxes this year.
The unpaid taxes are from concession sales from 2015, 2016 and 2017.
BlueSox managing partner Larry Sassone couldn’t be reached for comment following the authority’s meeting Thursday evening.
The BlueSox and the authority were not able to reach an agreement on a contract for the team to play at the stadium next summer. The team played at the stadium for 10 years.
Readie said solicitor Tom Breth will contact the Department of Revenue and ask for the penalty to be waived.
Possible litigation with the BlueSox was going to be discussed in an executive session after the meeting, Readie said.
The team and the authority, Readie said, knew the unpaid taxes would have to be paid.
“They knew this was coming. We knew this was coming,” Readie said.
She said the authority has the money to pay the taxes, but officials said making payments would allow the authority to keep money on hand to cover any unexpected costs before revenue from summer activities begins to come in.
“The good news is we have funds to do what we need to do, but this hurts,” Readie said.
When summer comes, the stadium will be called Michelle Krill Field at Historic Pullman Park under terms of a five-year naming rights contract with Shaun Krill, owner of Krill Recycling in Fenelton. Kelly Automotive’s naming rights contract with the authority expires at the end of the year and the new name becomes official Jan. 1.
