Fundraisers in the works to save Firefly Club; University Bank to collect contributions
Since the news broke that the Firefly Club in Ann Arbor was closed by state officials for unpaid sales tax, owner Susan Chastain said she's received an "overwhelming" outpouring of support.
That includes offers from 20 different jazz and blues acts to play a large benefit show here in hopes of raising the $120,000 Chastain owes to the state, as well as an offer from University Bank to set up a community contribution fund to help pay off local taxes owed.
Also a birthday party for jazz musician Tim Ries - originally set to be held at the Firefly Club - tonight - will instead be performed at the Kerrytown Concert House. Chastain said the concert house donated the space and Ries has agreed to give all proceeds to the Firefly Club. Tickets are $10 and shows are at 9 p.m. and 10:30 p.m. this evening.
"I am so moved and so grateful," Chastain said.
Stephen Lange Ranzini, president of University Bank, said today his bank will match $1,800 if the community can raise the other $1,800 to help Chastain pay $2,600 in local business taxes she owes and another $1,000 she is behind in on sales tax payments to the state.
Contributions can be made to the Joseph Ranzini Charitable Trust account at University Bank. Ranzini said the money would be released directly to the county and state and will be returned if Chastain and the state can't agree on going back to some form of their original payment plan. Ranzini's father, Joseph Ranzini, was a professional jazz musician.
Chastain she hasn't been able to get in touch with anyone at the state yet to discuss any sort of payment plan. She plans to get an agreement worked out before she accepts any money.
"I have never tried to get out of paying (the taxes) and I have told the state I owe you this and I want to pay it, just give me the chance to pay you what I owe you and stay open," Chastain said.
Comments
The Picker
Tue, Aug 18, 2009 : 5:34 p.m.
Help! Is there a C.P.A. in the house?
Blicero
Tue, Aug 18, 2009 : 2:54 p.m.
I think the best scenario would be if someone else bought the business and kept it going. If you run your business in this way, I'm not sure you deserve to keep it.
John Hritz
Mon, Aug 17, 2009 : 2:07 p.m.
It comes down to how much you're willing to pay for live music that you like. If you want live jazz in a club setting, you can support the Firefly or hope that someone with better business acumen will open a club. The argument that the taxes should have been paid is a reasonable one, but some may overlook that because the consequence of losing our last jazz venue is worse.
Top Cat
Mon, Aug 17, 2009 : 11:56 a.m.
$120,000? Good grief. There is no way they are climbing out of this hole. Sorry to say but their business model appears to be fundamentally flawed. Unless the community wants to maintain this as a charity, time to let the place close.
bob
Mon, Aug 17, 2009 : 7:59 a.m.
I feel bad that the Firefly was mismanaged finacially...it is truely an Ann Arbor entertainment asset. No one is perfect but when a business collects taxes they have a fiduciary responsibility to pay it to the proper agency. Calculating & paying sales tax is not difficult. It is 6% of sales. For every $1 you sell you collect an additional $0.06 that is not yours to spend. I have managed a business that collects sales tax and I maintain a separate account for taxes, both sales & payroll. Keeping the monies separate help avoid spending them but you still have to be disciplined, you can't rob Peter to pay Paul. $120,000 in back taxes....I am sure interest & penalties are steep but $1,000,000 worth of sales would be $60,000 in sales tax. My motto is never mess with the tax man...he don't play. That is how they got Al Capone.
chapmaja
Sun, Aug 16, 2009 : 9:22 p.m.
Something doesn't make sense about all of this. How exactly does the club get $120,000 behind in sales tax payments. As a former manager at a place that had to deal with sales tax, I do understand how confusing the sales tax stuff can be, but it doesn't make sense to be that far behind in payments UNLESS there is something else going onw. I agree with one of the other posters that maybe there was something else going on either intentional or unintentional that allowed for the payment of these sales taxes not to be made. For those that think it is as simple as collecting the tax on Sunday and paying on Monday you need to think again. It isn't that easy at all. It's even harder and more complex for a place like a club than it is at a normal business like a store.
Doug
Sat, Aug 15, 2009 : 11:56 p.m.
Patriotact is right: No one, except maybe NCTerry, is sitting in judgment here. Just pay your taxes, like everyone else has to, or work out a payment plan.
charis
Sat, Aug 15, 2009 : 9:10 p.m.
Duh, if you only have so much money at the gate and you have to pay for the performers and the staff you always hope you can pay the taxes tomorrow. For all those who say they'll miss jazz and the Firefly come up with some moola. Susan has worked her tail off for ten years and barely made enough to live on. put your money where you mouth is. Isn't live jazz worth more than Tios????
patriotact
Sat, Aug 15, 2009 : 9:09 p.m.
NCTerry, my personal finaces are clean and I am sure that they would pass your inspection. My point is that this tax is a collect as you go and is paid for by the patrons...not the owner. If it was set aside and paid to the state as it was collected, this would not have happened. This is not the result of some unfair business tax....this is SALES TAX, you may recognize paying it at other places as it is usually listed on your receipt as SALES TAX. The patrons have alreadty paid this tax and the club decided to not pay it...for whatever reason. I am not sitting in judgement of anyone. WE, the patrons, have already paid this tax and the club collected it. The CLUB should have paid for it. You are well within your right to believe that the club should not be accoutable for their actions, but my parents taught me better than that. I am also within my right to belive differently so how dare you "sit in judgement" FYI...Puh-leeze! was on the LSSU list of worn out words about 15 years ago. I'm just sayin.
johnp
Sat, Aug 15, 2009 : 5:56 p.m.
Can anybody say for sure that in the disputed 5 year period (2000-2004) that she wasn't a victim of accountant fraud? Everyone is so quick to judge, but we aren't privy to all the facts. Unlike so many others, Susan has taken responsibility and for that IMHO she has my support. It seems that the 2005-present taxes are paid, which in these times are tough. I have seen Ann Arbor go from a town with generous support for local live music to one that would rather see a dj. For that I'm ashamed. It used to be when talking about hotspots in the music industry, Ann Arbor was mentioned, too bad that's not happening now. Of course this is all just my opinion, and you can ridicule and besmirch me like they do to opposing opinions on the nightly news.
The Picker
Sat, Aug 15, 2009 : 5:28 p.m.
I'm sorry things worked out like they did, but the fact is she spent money that wasn,t hers to spend. That's illegal, The problem is that the gov't forces small business to collect and ACCOUNT for their revenue. As we can see,a daunting responsibility. A whole level of accounting for the gov't that you are not paid for. The taxation laws are the problem. One should not have to risk prison just to provide a service. Let the tax agency collect for her self. The next time you vote in a new tax, I hope you think of the Firefly.
NCTerry
Sat, Aug 15, 2009 : 5:13 p.m.
OK... so she was wrong. I bet if you check the other businesses in Washtenaw County there are many others in the same boat. Some probably further behind. Does it really serve any purpose to further humiliate her in a public forum?
Doug
Sat, Aug 15, 2009 : 4:31 p.m.
NCTerry said: "how dare you sit in judgement. Perhaps she decided to pay her staff instead so they could pay rent and feed their families." NCTerry - Lighten up on the lofty motives. Had she not paid her employees, they'd have walked. It's not like she had much of a choice on that one. Sales taxes, in contrast, can be -- and apparently were -- dodged for a very long time before collection action, that ultimately resulted in the shutdown, commenced.
NCTerry
Sat, Aug 15, 2009 : 3:22 p.m.
pat and EG... how dare you sit in judgement. Perhaps she decided to pay her staff instead so they could pay rent and feed their families. Our tax monies are hijacked on a regular basis by business owners and our very own government. It may not be the best course, but sometimes the choice isn't as easy as you make it out to be. Apparently you're perfect and never do anything remotely illegal or unethical, but I doubt everyone else can live up to such high standards. Maybe you should consider keeping your stones and your holier-than-thou comments to yourself. If you don't want to lend your support or patronize it in the future, that's your biz. But, the last thing she needs right now is preachy folks sitting in judgement. I, for one, am forgiving and won't be casting any stones. I'll be joining with others in working for the greater good rather than looking down my nose and trying to shame someone who runs their business as best they can. Have you walked in her moccasins at any point?!? Would your life (and your books) live up to such scrutiny? Puh-leeze!
patriotact
Sat, Aug 15, 2009 : 1:46 p.m.
ummm why would anyone contribute to a fundraiser for this? The firefly may be a great place, but this is for not paying SALES TAX...you know, the tax they collected from the patrons...WE paid the tax already, the firefly should have just sent it to the state in the first place! This may be a good place, but collecting the taxes from the patrons and then failing for years to send that money to the state is wrong. I will not donate and I will not return to the firefly club if it stays open.