Judge threatens to close Garduno's over taxes

Posted at: 10/20/2009 4:56 PM | Updated at: 10/21/2009 7:36 AM
By: Gadi Schwartz, Eyewintess News 4; Matthew Kappus, KOB.com

Garduno's says they plan on paying up

On Tuesday, a judge ordered Garduno's, one of New Mexico's best-known restaurants, to stop serving food until it pays its taxes.

The Garduno's chain owes the state almost $1 million in taxes and penalties. For now, the restaurants remain open, but as soon as the paperwork is filed and the judge signs off on it, Garduno's restaurants across the state could be forced to close.

The decision comes after the state's Tax and Revenue Department took the restaurant chain to court for $750,000 in back taxes. Garduno's also owes about $200,000 in fees.

State tax officials say they have been trying to get Garduno's to make payments for a year now. If the company starts making those payments soon, they may not be forced to close.

"We pay for our enchilada and our margarita and we pay 6 and a half percent tax or what ever it is at the particular store and I think we all assume that tax is going to be collected and paid on to the state. In the case of Garduno's, all of these taxes have been collected and then pocketed by the business," said New Mexico Tax and Revenue Department Secretary Rick Homans.

On Tuesday, a spokesperson for Garduno's said they are in the process of working out a five-year payment plan with the Tax and Revenue Department. They say they will pay the full amount owed, including the $200,000 in penalties. They say they don't expect any Garduno's locations to close.

Homans says that is the first he has heard of a Garduno's payment plan.

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