Restaurants Owing Back Taxes Get Reprieve

The Town Council extended a little town credit Monday night when it allowed restaurants still in arrears on taxes to the state or the town to remain open past the Nov. 30 expiration of their beverage-victualing license. Out of East Greenwich's 32 restaurants with BV licenses, 6 have not been cleared for renewal.

"Nobody's getting shut down. That's the bottom line," said Council President Michael Isaacs. The council will address the license renewals at its meeting Dec. 9.

Four of the restaurants have been cleared by the town, but they have not received certification of good standing from the state tax department. Those restaurants are Outback Steakhouse, Pal's, Rok Bar & Grill, and Pizza Heaven. A fifth restaurant, Bistro 9, owes the town $89.28 and state certification. 

Norman's, the sixth name on the list, is in a much different situation, owing $36,962.53 in town taxes. It has been cleared on state taxes. The restaurant is behind more than $25,000 in sewer use fees from the past three years. The rest of the money owed is in real estate taxes. 

Sharon Hazard, daughter of owner Norman Harris Jr., attended the council meeting Monday night. 

"My dad's been in business on Main Street for 47 years," she told the council. "The economy the last eight years has been tough." 

Hazard said her father had been unable to secure a loan to pay off the taxes because identity theft had caused substantial credit problems for him.

"It's not reasonable for us to think this money is going to be paid by Nov. 30," said Isaacs. "I'd like to suggest a payment plan."

Other councilors were less forgiving. 

"Some of these bills go back years," said Jeff Cianciolo. "Sewer use fees haven't been paid but real estate taxes are relatively current. All the bills that would result in a lien have been paid. The one that wouldn't has not been paid."

Sewer use fees are not tied to property, so no lien is created when they are not paid.

"I think its unfair to ask other taxpayers to subsidize your decision-making process," said Mark Gee. "This is a serious dilenquincy. Is it now time to close the doors and put this business on the market?"

Despite reservations, the council directed Town Manager Tom Coyle and Business Manager Cathy Raposa to see if some sort of payment schedule could be arranged by the Dec. 9 meeting.