Tax permit revoked for closed Bemidji eatery Pita Pit
The Minnesota Department of Revenue recently revoked the sales-tax permit of Gerbalde, Inc., doing business as Pita Pit, for failing to file and pay sales taxes to the state. According to the department, the business allegedly owes the state more than $132,000.
The department claims the restaurant, located at 1204 Paul Bunyan Drive N.W. in Bemidji, failed to file and pay sales taxes between July 2008 and January 2010.
Minnesota sales tax is a "trust tax." Customers pay sales taxes with the expectation that businesses will remit them to the state on their behalf. Sales tax cannot be used by a business as additional operating capital or for any other purpose.
If a person or company makes retail sales in Minnesota after revocation of their Minnesota sales tax permit, the action is considered a felony under Minnesota law.
The business is closed.