Garibaldi's closed in Carpentersville over unpaid taxes
The state has shut down a Carpentersville restaurant that failed to pay its sales taxes for almost a year, documents show.
Garibaldi's restaurant, an Italian eatery on the west side, had been open for 7½ years before its late-July closure.
Documents from the Illinois Department of Revenue show owner Steve Carlson owes liens on the business that total $117,954.70, including penalties. They also show payments began to lapse in November 2009 and that there were only two payments made between then and November 2010.
The closing affected 15 employees, Carlson said. Four joined him at Garibaldi's in Hoffman Estates, where he oversees day-to-day operations. The remaining people are collecting unemployment, Carlson said, adding that he feels bad for his employees.
“I'm trying every day to get this resolved,” Carlson said, adding that he didn't pay the sales taxes because business was slow in Carpentersville.
A spokeswoman from the department of revenue could not comment specifically on the situation at Garibaldi's but said that in general, the state works with owners who are late paying their sales taxes.
The goal is to keep the eatery open so people continue to work and so owners can keep collecting sales tax, spokeswoman Susan Hofer said. The state closes businesses only as a last resort, she added.
”The bottom line with the retail taxes, is that's a ‘trust tax,' ” Hofer said. “They charge the tax on your bill, so you pay the state, but then they don't forward your money to the state of Illinois. So what are they doing with your money?”
On July 21, Illinois officials revoked the eatery's certificate of registration, a document that allows it to operate and collect sales tax.
The closure marks the second time the state closed a Garibaldi's restaurant for failure to pay sales taxes. Last September, the state closed the Arlington Heights location for the same reason.
Carlson can reopen the Carpentersville eatery once he settles the debt, but he doesn't yet know when that will be. The state arranged a payment plan for him to follow but he hasn't been able to send any money thus far.
“I'm sick to my stomach right now,” he said.
Garibaldi's was more than just a business in Carpentersville. Besides serving up spaghetti and sandwiches, it also collected toys for needy children and donated food to village-sponsored events. It was also the only Garibaldi's location with a drive-through.
The closure means Helen Bosshardt of Huntley will have to wait that much longer for a certain frozen treat.
Monday she was all set for a particular lemonade, but the fluorescent green sign announcing the license revocation, greeted her instead. She's patronized the chain for 25 years and the Carpentersville location for five.
“I want my Italian ice lemonade,” Bosshardt said.