Steamboat Springs The Bakery restaurant in downtown Steamboat Springs is closing because of issues stemming from back taxes.
The restaurant was seized by the Colorado Department of Revenue for the nonpayment of sales taxes Wednesday, triggering events that led to the business' closure, owner Doug Matthews said.
The notice on the front of The Bakery stated that $7,589 was due to halt the auction that was scheduled for 11 a.m. April 2. Matthews said he paid what he owed the state, and the notice was removed Thursday afternoon.
Matthews said Thursday that he was told Feb. 18 that he had 30 days to pay the state, which would be March 19.
The Colorado Department of Revenue was not able to be reached for comment late Thursday afternoon.
Matthews said that an official with the Department of Revenue posted the seizure notice and changed the locks Wednesday, which is a week before when Matthews said he understood to be the final date to pay back the state.
The state collects taxes for itself and Routt County.
The city of Steamboat Springs filed a sales tax lien against The Bakery on Thursday for about $4,000, according to Director of Financial Services Kim Weber.
Matthews said he had an agreement with the city of Steamboat to catch up on the taxes he owed but found his checking account was frozen March 5.
Weber said the city is working with Matthews to recover the taxes but that there also is a federal payroll tax lien against the business for about $26,000.
Matthews said he has plans to get caught up on his city taxes and has lawyers to help him arrange a deal to pay the federal taxes.
He said he will continue to bake for the many wholesale contracts he has with restaurants in town.
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