Saline City Council's liquor license threat forces Mac's Acadian Seafood Shack to pay late taxes
(Updated 11:52 p.m. The Saline City Council has passed a resolution to recommend that the Michigan Liquor Control Commission approve a liquor license renewal for Mac's Acadian Seafood Shack. The decision came after Mac's paid its tax bill this morning, averting a showdown with the city over its late payments.)
The Saline City Council will consider Monday night whether it should pursue steps to revoke the liquor license for Mac’s Acadian Seafood Shack due to two missed deadlines for property tax payments.
Mac’s this morning paid a $3,092 late tax bill to the city of Saline - including about $293 in penalties and interest for missing the summer tax deadline of Sept. 1 and winter tax deadline of Feb. 14, city officials said.
Bob Rash, co-owner of Mac's Acadian Seafood Shack in Saline, said his decision to pay the restaurant's tax bill late is "my prerogative."
Janet Miller for AnnArbor.com
That came hours before the City Council plans to weigh whether to conduct a public hearing to consider recommending that the Michigan Liquor Control Commission remove the restaurant’s liquor license.
Payment of city taxes is required to receive recommendations for liquor license renewal.
After paying the bill, Mac’s is expected to dodge the hearing. But the move exposed a concern about the tardy payments.
“They’ve always” paid late, Mayor Gretchen Driskell said. “I think there are other people who do that, who have cash flow issues. I don’t know how many people it is.”
Driskell said she wasn’t concerned that Mac’s is facing financial problems.
“Are we worried that they’re going to close their doors tomorrow? No,” she said.
Bob Rash, a co-owner of Mac’s, defended his decision to pay his tax bill belatedly.
“It’s a non-issue,” he said. “We’re all paid up. Everything’s fine. If you make any issue with this you’re barking up the wrong tree.”
Rash said Mac’s has experienced year-over-year revenue increases for eight straight months. He told AnnArbor.com last month that business was picking up, although December 2009 revenue was below December 2007 revenue.
"Every restaurant in Ann Arbor experienced a downturn," Rash said. "We're no different than everybody else. We're one of the few that have experienced an upturn."
Asked why Mac’s declined to pay its personal property taxes on time, he said he has other bills that take precedent over his tax payment.Â
“That doesn’t mean there’s an issue,” he said. “That’s my prerogative.”
Washtenaw County treasurer Catherine McClary said that real property taxes tied to the Mac’s facility, which it rents at Murphy's Crossing, 104 E. Michigan Ave., have always been paid on time. This bill, however, was for personal property taxes, which the city collects.
McClary said it’s unusual for businesses to “use non-payment of taxes as a business practice.”
“What we are finding in this economy is that we are having increasingly larger numbers of commercial properties that have delinquent taxes, and it is purely a function of the economy,” she said.
Rash said the restaurant’s decision not to pay its personal property taxes on time was not a political statement.
“The idea of a personal property tax for a restaurant makes no sense,” he said. “If I buy a new refrigerator, why should a company have to pay a city tax on that refrigerator?”
The City Council is also set to vote on a resolution to recommend approval of annual liquor license renewals for the Saline American Legion, Maplewood Lanes, Dan’s Downtown Tavern, Brecon Grille and Ruby Tuesday.
Contact AnnArbor.com’s Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com or follow him on Twitter. You can also subscribe to AnnArbor.com Business Review's weekly e-newsletter or the upcoming breaking business news e-newsletter.
Comments
bunnyabbot
Tue, Jul 6, 2010 : 7:55 p.m.
yeah, I pay property taxes on my display cases and shelves, which I PAID FOR when I bought them, all of which decrease in value but I have paid for multiple times by being hit with this (more than double dipping) tax.
djm12652
Tue, May 4, 2010 : 3:27 p.m.
I love the fact that a Business Tax is called "Personal Property Tax"...the "assets" that are taxed are property of the company, not any one individual.
Atticus F.
Tue, May 4, 2010 : 12:09 p.m.
This article is making me crave oysters.
Bob
Tue, May 4, 2010 : 11:29 a.m.
Just goes to show you that not all publicity is good publicity.... I certainly wouldn't support this business especially the attitude they've taken....
huh7891
Tue, Mar 23, 2010 : 8:33 p.m.
Love Mac's, good food...all this did was remind me we need to make a trip to Saline to eat there. Don't they also run/own the NorthPoint in Dexter? Both places well worth making a visit for dinner.
ArgoC
Tue, Mar 23, 2010 : 4:38 p.m.
I second what yadabuster says, in fact I'm gonna print it out and hang it up. Just wanted to say how glad I was to see the article because it reminded me, living in Ann Arbor, to head over to Saline to eat there again. One of my two favorite area seafood places.
yadabuster
Tue, Mar 23, 2010 : 4:15 p.m.
It seems there are a lot of people who like to talk about things they don't know anything about. Please be quiet and let this man run his business. It is hard enough in this climate of government greed to stay alive without all of the chatter from the peanuthead gallery of folks who have never risked a dime on anything but the lotto ( another government swindle job). All you need to do is wash your hands, sit down, eat your food, pay your bill and go home. When you can master that without screwing it up then lets talk. He probably pays more taxes in one month than you do all year. From another merchant in another town of outspoken people.
DaLast word
Tue, Mar 23, 2010 : 3:55 p.m.
While it's true that the taxable amount decrease's each year it eventually reaches a floor where it is taxed at a certain amount regardless of the value of the equipment. The Ford plant in Belleville recently challenged the city. The city hired my friend to access and found tha Ford was correct. My friend was sworn to secrecy while the city tried to renogotiate something higher with Ford. Maybe if these municipalities would treat business' more fairly, they would find it easier to keep the doors open.
DaLast word
Tue, Mar 23, 2010 : 3:35 p.m.
By the way, this is a fine establiment, great food, and Bob Rash is a upstanding individual
DaLast word
Tue, Mar 23, 2010 : 3:33 p.m.
Sorry but Bob is absolutely right about the personal property taxes. I'll bet most people who don't own business' don't realize that things that business' purchase get put on the cities tax role and companies pay tax on these items EVERY YEAR, over and over and over. This includes equipment, carpet, and paint on the walls. It is a burden on business that ultimately gets passed on to the costumer assumming the market will bear it. It's just another way that the public gets taxed and they don 't even know about it. Volunteers of America... Start the revolution!
wln15
Tue, Mar 23, 2010 : 12:46 p.m.
He didn't say he was trying to not ever pay the tax bill! Haven't any of you ever had to make the choice of which bill/s to pay with your limited amount of money? I interpret his words to mean just that. They chose to pay this bill late vs. paying a different bill late. Everyone has the option to pay late with a penalty.
Bob
Tue, Mar 23, 2010 : 11:48 a.m.
Once place I will never visit again...I've lived in Saline for over 10 years now and have only been there once (that's how good I thought it was, not to mention those oh so reasonable prices)...so I guess they won't miss my business :)
Paula Gardner
Tue, Mar 23, 2010 : 11:11 a.m.
Patrick Little, Thanks for responding to this story. I just want to make it clear to readers that you are on Saline's City Council. We believe it was worth a story since city administration thought it enough of a concern to put it on the agenda for a public discussion and council vote.
glimmertwin
Tue, Mar 23, 2010 : 8:37 a.m.
>>he said he has other bills that take precedent over his tax payment. I hope he realizes how much bad PR he just purchased with that 3 grand. I wouldn't be making any reservations too far in advance - something is not right with this. Nobody likes paying taxes, but I would have to believe there is an underlying problem here that sooner or later, will become very clear.
Patrick Little
Tue, Mar 23, 2010 : 8:08 a.m.
First of all, this isn't a big deal. Restaurants are all about cash flow and in this economy high end places have to do an economic balance act every day. Secondly this isn't a Saline tax it is a state tax. Don't like the tax, elect people who will change it in Lansing. Mac's is a good corporate citizen in Saline giving support to many projects. This doesn't rate a story.
bob
Tue, Mar 23, 2010 : 7:37 a.m.
I agree that personal property taxes are just an income stream for municipalities but we don't show our disagreement by not paying. And regarding Andy Jacob's comment "As long as property is on the books a business has to keep paying for them year after year after year (after year)" that is not true because the property decreases in value and the tax decreases year after year. It is true that every time you make improvements and purchase new equipment your taxes increase. That is part of the cost of doing business, along with payroll taxes, income tax, liquor license fees, liquor insurance, general liability insurance, fire insurance.....etc, etc, etc.
xmo
Tue, Mar 23, 2010 : 7:37 a.m.
Mac's and most other small business's will be out of business soon. The Health Care Tax that starts in 2011 will wipe them out.
fester
Tue, Mar 23, 2010 : 7:31 a.m.
I guess I've had my last meal at Mac's, I just can't support someone who doesn't pay taxes and then takes this type of attitude. There are many types of taxes I disagree with but still pay them (on time) because I (we) are required to.
The Picker
Tue, Mar 23, 2010 : 7:28 a.m.
Mac's should do what any business would do when encountering an extortionist, RUN! Start making plans to relocate. Come on, Saline is not that big a reason for this restaurants' success. Many communities will welcome you without the thug treatment.
Soothslayer
Tue, Mar 23, 2010 : 6:06 a.m.
Assessing personal property tax is counter to fostering business growth and development in a community. It continually penalizes businesses for investing in furnishings & equipment, especially those that are high quality and have continuing value and life expectancy. As long as property is on the books a business has to keep paying for them year after year after year (after year). Mac's is authentic, independent, Michigan based and achieves everything it strives to be. We will most certainly continue supporting them, to our culinary delight! With regards for tax revenue, Go fish Saline! (pun intended)
SMAIVE
Tue, Mar 23, 2010 : 5:52 a.m.
In the past, the city published a list of businesses whose taxes were far in arrears, but of course it became too controversial (politically) and all-telling, especially when city permits or licenses were in the mix.
BigMike
Mon, Mar 22, 2010 : 10:01 p.m.
Bob Rash is right - personal property tax should be abolished. It's an invention of municipal and township governments solely to increase their revenue. We (businesses) pay sales tax on the items we buy. We shouldn't have to pay taxes for keeping those items.
johnnya2
Mon, Mar 22, 2010 : 7:48 p.m.
The penalty and interest rate don't matter. If the choice was between paying your obligation to your food purveyors or employees versus a personal property tax it seems they made the choice as a good business decision. If they do not pay payroll or for food, that will close the doors much faster. For the person who said they are not complying with their civic obligation, might want to RTFA. It says they paid it. Anybody can pay their bills late. It is their choice. They pay the penalty. It is rather odd to pay personal property tax on equipment needed to run a business.
RTFM
Mon, Mar 22, 2010 : 6:14 p.m.
Bob Rash, spoken like a DC politician. Just knowing this resturant is not complying with it's civic obligations, makes me wonder what else they skip out on doing? I never liked this place to begin with, so just seeing this online will make me avoid this resturant in the future.
stunhsif
Mon, Mar 22, 2010 : 6:10 p.m.
@JohnofSaline, The penalty was about 9.2% of the total tax bill and was paid 6 months late. Show me where I can earn an annual rate of 18% a year on my cash and I will invest all my money in that right now!
John of Saline
Mon, Mar 22, 2010 : 5:17 p.m.
Weird. Wouldn't the penalty $ be more than any interest he could have earned on the cash in the meantime?