Tax dispute brings liquor seizure

A Lawrence liquor store owner who the state says owes thousands of dollars in back taxes watched Thursday as state agents carted away his supply of liquor and beer.

Joe Stafford, owner of Mom and Pop’s liquor store, 1906 Mass., remained open Thursday night as he and his employees worked to restock the store.

A state revenue agent, left, carries a case of liquor from Mom and Pop's liquor store, 1906 Mass., to a Ryder truck during seizure of the store's contents. Inside the store at right, a state police agent labels each container as it is brought out of the store Thursday during the tax-enforcement action.

Stafford said he disagreed with state allegations that he owed state liquor enforcement, sales and miscellaneous taxes of about $36,400.

“It’s less than that,” Stafford said. “It’s in negotiations.”

Stafford would say nothing else about the action taken by the Kansas secretary of revenue’s civil tax enforcement agents. He said he intends to stay open, even though his license expires at midnight Tuesday.

Carrie Neighbors, who owns Yellow House store, 1904 Mass., arrived Thursday morning at her business next door to the liquor store and found state agents’ cars parked in front of her business.

“They were here all morning waiting for someone to come and open up (the liquor store),” she said.

When an employee arrived about 11 a.m., the agents moved in, Neighbors said. A Ryder rental truck soon backed up to the door, and agents began hauling cases of liquor out of the store and onto the truck.

Beer distributors were called to come and get the beer because the state has no refrigerated storage, said Gayle Martin, spokeswoman for the secretary of revenue.

About a dozen agents loaded liquor until about 4 p.m. before leaving, Martin said. At least one Lawrence Police officer remained at the scene with the state agents.

The confiscated liquor will be sold to licensed Kansas wholesalers in an attempt to get the money Stafford allegedly owes the state, Martin said. The state didn’t detail the amounts for each type of tax owed, but Martin said most is for liquor enforcement tax dating to 1999.

Liquor enforcement tax is based on a store’s sales and amounts to 8 percent. It is due every 30 days, Martin said.

Martin said she couldn’t discuss specifics about Stafford’s store, but said that, in general, store owners are contacted about overdue taxes before any confiscation takes place.

“There is letter writing and extensive communications before tax warrants are issued,” Martin said.

Tax warrants allow seizure of the liquor.

The seizure did not include an order to stop the liquor store from doing business, Martin said.

The liquor store building is owned by Willfred Eudaly, 91, Lawrence. Eudaly said he was unaware of the problems Stafford was having with the state.

Eudaly said someone called him Thursday morning to tell him a truck had backed up to the store and the store was being emptied.

“I’ve been trying to find out what is going on, but nobody would tell me,” the homebound Eudaly said.

Eudaly operated his own liquor store at the site for years before renting the store in 1985, he said.