Cafe closed, but tax bill rolls on | Napa Valley Register

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Cafe closed, but tax bill rolls on

Monday, October 26, 2009

Comment

By Kelley Novak

I am writing to offer some insight as to what it means when you choose to close your business, regardless of the reasons.

I am prompted to write after reading about the closing of Piccolino’s a few weeks ago. I suffered the same plight in May when I received a letter from my landlord stating that as of June 1, my rent would essentially double, so pay up or vacate. I chose the latter, as there was no way I could afford the escalated rent, and even pleaded with my landlord to lower my rent in these tough economical times so I could stay afloat and try to weather the storm.

It was a tough decision to close, but there wasn’t really any alternative. Given 30 days’ notice is hardly enough time to get your things in order and plan for the next step, but such was reality. I tried to let all of my purveyors and wine people know I would be closing and would do my best to pay off all past debts over time, knowing that I could not possibly keep the café going and make enough money to get everyone paid when the doors were finally shut.

I ran the café to the bitter end, leaving us with three days to remove all of my property from the premises. I made sure my employees were paid first because I felt this was most important. They were excellent employees and friends over the years, and we were all now suddenly out of a job.

Because I did not have another job lined up nor had any financial assistance from anyone, I was pretty much forced to sell anything I could for pennies on the dollar. ($3,000 for all of my restaurant equipment, just for starters!) It will probably take me a full year to repay everybody, but it will happen.

My heartfelt thanks to North Bay Produce, United Meat Company, Royal Hawaiian Seafood, Model Bakery, Pan OH Rama Bakery and a few wineries, for your patience in allowing me to figure out how I’m going to do it without declaring bankruptcy or filing for unemployment.

I was shocked, however, to receive a bill from the Napa County Tax Collector for property taxes over the fiscal year July 1, 2009-June 30, 2010. Because I was still in business as of Jan. 1, 2009, it seems I am responsible for paying this tax ($1,233.93) even though I will not be doing business during the period mentioned above. I am being taxed on $102,320 worth of fixed improvements and personal property, all of which I sold for a whopping $3,000. I know the law is the law, but one would think an exception could be made in cases where businesses are essentially forced to close. Most honestly, I don’t have the money and now they will begin assessing penalties, late fees, and last, but not least, a good old-fashioned lien. It simply isn’t right.

I know those of us who have lost their businesses are looking to wash their hands from the past and making every effort to move forward. It would be nice if the city would reconsider its tax laws and maybe make an exception every once in a while.

(Novak, owner of No Bad Days Cafe, lives in Napa.)

20 comment(s)

tramky wrote on Oct 26, 2009 3:41 AM:

" This another of the wonderful 'gotcha' laws established by our idiot legislators in Sacramento. You know, those idiots who do NOT represent the
people who send them to Sacramento.

This is state law, not controlled by county or local government. So the responsibility & blame for this injustice lies at the state capitol.

I can tell you that I had a business in Colorado, and this kind of nonsense was not in place there. California is, as usual, behind the times and archaic in its thinking. And it ALL falls at the feet of the California state legislature, a disgusting lot of bloodsucking dirtbags.

This is from the Napa County Tax Collector's website:

Per state law, the obligation to pay unsecured taxes rests with the assessed owner of record on the lien date (January 1, 12:01 AM.) The disposal of property AFTER the lien date does not relieve the assessed owner from the obligation to pay the unsecured taxes. Any prorating must be done between the private parties. Neither the Assessor, Auditor nor Tax Collector can prorate unsecured taxes. Delinquent unsecured taxes are subject to collection enforcement. "

kevin wrote on Oct 26, 2009 4:49 AM:

" What?

I am SURE you were supposed to get some kind of relief from B.O.'s so called "stimulus" plan... "

Jane Eyrehead wrote on Oct 26, 2009 5:38 AM:

" The issue is with the county, not the city, but Novak makes a good point. That lady can certainly cook--I hope she gets back into the game.

Her story is not unusual. The restaurant business is famously hard. If a cook insists on the best ingredients, as she did (farmer's market tomatoes!) it's even harder. "

Cowboy wrote on Oct 26, 2009 6:54 AM:

" Not big enough for an Obama bailout. "

Howell-No wrote on Oct 26, 2009 8:13 AM:

" John Tutor,

How about all these illegall housing units being built up here in Angwin?

Would you like to collect property tax on them?

How can you be notified of this situation? "

krusty wrote on Oct 26, 2009 8:45 AM:

" Thanks, Kevin. I had you as the "which conservative blames Obama first for the property taxes on a Napa business" in todays office pool. I'll be recieving a decent "stimulus" of my own. A big thank you to the NVR. Since they're not following their own "staying on topic" rule, this was possible. "

Twocentsguy wrote on Oct 26, 2009 10:31 AM:

" So much for the cafe's name. I'm sure you finally had a "Bad Day". I, for one, would NEVER lease a building in Napa for the reasons you stated. Inflated rents and Tax Accessor being totally unfair, and so many other reasons... I've never been to your cafe but wish you luck in the future! "

kevin wrote on Oct 26, 2009 10:36 AM:

" Why wouldn't that be "on topic"? This is dealing with the effects of the recession (or depression as VP Biden recently called it).

$800 Billion dollars (of borrowed money) can pay for a LOT of things: extra unemployment, digital TV converter coupons and money for the National Endowment of the Arts; why NOT tax relief for small businesses?

Small businesses provide JOBS, which should have been the #1 priority of the bill... "

cab e-girl wrote on Oct 26, 2009 11:00 AM:

" Sorry Kelly, but as a business person you are considered a "Rich Business Owner." California as a state has become increasingly business aggressive. Some of the fees I pay that cost $35.00 last year are now $295.00. This is how our legislatures are dealing with the deficit, without raising taxes. I have been receiving "Registration Fees" and "Licensing Fees" from the state that I didn't know existed. The federal government and the current administration is quickly following suit to the California model.

The good news for you Kelly is that since you have gone out of business and sold your equipment there is no question as to the value of your equipment. I think John Tuteur is a reasonable guy and will make the necessary adjustments so your bill will be greatly reduced. The bad news is another employer in California has closed their doors.

Krusty, Obama in particualar is not to blame for this happening, but his "Marxist" ideas that he is imposing on us, will have the same results. "

post-it wrote on Oct 26, 2009 12:04 PM:

" Seems to me, people are focusing on the tax issue, when the real issue is that the landlord doubled her rent. Again - if the rent had not been an issue, would she still be in business and able to pay the tax?

The tax is insult to injury. However, I suspect there were plenty of times where all business owners skate from taxes & fees, but I suspect they don't volunteer to pay them then... "

1napanow wrote on Oct 26, 2009 12:23 PM:

" Dang, cab e-girl. Krusty beat me to Kevin in the office pool and he won the big prize. Thats OK, I am sure you can be first to post irrelevant, anti-Obama blather next time!
Good Luck Kelley! Hope that you give it another try. "

vocal-de-local wrote on Oct 26, 2009 12:45 PM:

" Howell-No, unfortunately, Angwin is out of sight, out of mind. I witnessed three outbuildings illegally constructed on a parcel in Angwin. No bathrooms either. You could not walk past the property without smelling the failing septic caused by the constant flow of people staying there.

And they want to build development up here, where maintenance and aesthetic issues are addressed by a Home Owners Association, who are supposedly going to "take care" of all the problems? Yeah, right.

Anyway, regarding the tax situation with the restaurant, contact Tuteur. Get back to us ASAP, and report whether or not he resolved this situation. Your story is heartbreaking. I personally want to know that this was resolved in a fair way. If it doesn't get resolved, please let us know so that we can conduct a letter writing campaign to Tuteur. "

alucawanza wrote on Oct 26, 2009 1:19 PM:

" Ms Novak
It would be worth the price to see a lawyer who specializes in tax issues. This is outrageous. I read your letter several times. What property do you have to pay taxes on? It's leased from someone else. See, I don't have enough information. You need a lawyer. "

Hear Ye wrote on Oct 26, 2009 1:43 PM:

" Obama Derangement Syndrome is strong in some of you. Get well soon.

I really enjoyed the cafe :( "

glenroy wrote on Oct 26, 2009 5:57 PM:

" Kelley… your less than considerate landlord has ruined that shopping center and many small businesses in the process…

You can appeal the assessor’s tax bill through County Supervisor’s… unfortunately 3 of the 5 are not very sympatric or concerned with small business owners or their employees….

Call Supervisor Dodd's office he's been very helpful in the past... "

Virgil Dennis wrote on Oct 26, 2009 7:22 PM:

" Interesting, you got less for your kitchen equipment than you would have if you sold a Hummer...the irony is deafening. "

tiredofcomplainingnapkins wrote on Oct 26, 2009 9:49 PM:

" Hey kevin,

I dont think that 1 trillion the Bush administration spent on the destruction and reconstruction of Iraq really helped us out either, has it? At least that 800 billion is being spent HERE on the TAX PAYERS, I'm all for my dollars going to helping my fellow AMERICANS, not some country half away around the world "

vocal-de-local wrote on Oct 27, 2009 2:45 PM:

" Hey guys, this is not the place to hijack the blog to create political division.

This person needs our support and help. We need to problem solve. "

eas001 wrote on Oct 30, 2009 9:25 AM:

" Get out and support your LOCAL restaurants more are destined to close!

Kelley, we miss your restaurant and anticipate your next move!!! "

farmerkell wrote on Nov 3, 2009 7:21 PM:

" I've emailed John Tuteur in response to his response in the paper. (Your turn, Nov. 1 2009) Hopefully, there will be a provision acknowledging closed businesses and perhaps offering some relief with regard to property tax burdens. (Even though I don't own the property!)This would be a huge step.
The doubling of my rent by my landlord (no, he is not G.A.!) was the real blow. When I expanded into the space next door, he tripled my rent. I put over $150K into the expansion and remodel. I never really recovered. Once the space doubled, so did everything else as far as money was concerned. I probably should have known better, but I needed a little more space. As it turns out, my landlord just wanted me out. It was personal. He didn't appreciate my 'sense of humor' or opinions about certain HUGE things.
I'm over it now, but I essentially lost everything.
I hope the county does the right thing. It might make people feel a little better about doing business downtown.
Thanks for your words of support and encouragement.
Good god. No plans for a restaurant in the near future! "

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