Politics & Government

Nielsen's Owner Summonsed For Failing To Pay Meals Taxes

Ice cream shop faced similar charges earlier this year

The owner of Nielsen's Custard was summonsed by Vienna Police last week for four class one misdemeanors for failing to pay Town of Vienna meals taxes.

Michael Paul Willis, 29, of Herndon, was served warrants Dec. 1 for not paying monthly meals taxes to the town from July to October 2011.

It's unclear how much Willis owes, because sales are self-reported.

Find out what's happening in Viennawith free, real-time updates from Patch.

A court date has been set for Willis, said Public Information Officer Kirstyn Barr. It was not clear Friday when that date is.

If convicted, Willis would face up to 12 months in jail and/or a fine of up to $2,500 for each charge, Officer Bill Murray said.

Find out what's happening in Viennawith free, real-time updates from Patch.

It's the third time Nielsen's, registered in Vienna since 2002, has faced such charges this year.

In June, Willis for not paying Town of Vienna meals taxes during several periods over the previous year.

Vienna Town Code requires all businesses that sell food to pay 3 percent of its qualifying meals sales, whether or not that food is prepared on premises. It is not an assessed tax on the business, but instead included in the price that patrons pay at the time of purchase.

"[Owners] act as agents of the town to collect meals tax, so when it's not turned over to the town that’s considered embezzlement," Murray told Patch this summer.

Police said Willis did not pay meals taxes from May to July 2010 and for September 2010.

Those felony warrants were a last-resort measure by the town after several attempts to get Willis to pay business license fees and file meals tax returns, Murray said. In May, police issued five misdemeanor warrants for Willis, charging him twice for failing to obtain a business license and three times for not filing meals tax returns.

Willis The embezzlement charges for failure to pay meals taxes were dropped because those outstanding funds had been paid to the town.

About 80 businesses in town pay meals taxes, Barr said. In fiscal 2010, meal and lodging tax revenue, which is included in the town's debt service fund, brought in $1.68 million. At the end of this fiscal year, the town will collect about $1.75 million, Finance Director Phil Grant said.


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here