At least one local business was forced to close because of an alleged “aggressive” interpretation of tax laws by the Nevada Department of Taxation. That’s according to the business that was recently closed for more than a month.
Joe Cannella, with East Fourth Street’s Ferino Distillery, set up a GoFundMe late last month to survive the distillery’s closure.
“A recent aggressive action by the Nevada Tax Department has led to the temporary closure of our operations for nearly a month now, a scenario that several other businesses are grappling with,” he wrote on the fundraiser’s page.
“We are disputing their claims vigorously, backed by legal counsel and an outpouring of support from industry professionals, local officials, and numerous institutions, including the Reno-Sparks Chamber of Commerce. We are confident that we will ultimately prevail.”
Cannella did not respond to This Is Reno, but one source said the distillery is back open on a limited basis. A source speaking on the condition of anonymity described the Nevada Department of Taxation’s actions as “too aggressive.”
Ann Silver with the Reno-Sparks Chamber said her group stepped in to help.
“The Reno + Sparks Chamber of Commerce can’t comment on what we don’t know in terms of the closure, but we immediately stepped in to assist a Chamber member located in an important commercial corridor in Reno, shuttered by a state agency without notice,” Silver told This Is Reno. “We put forward a ‘full court press’ to understand why this happened, and we believe our efforts, along with many others, generated a positive outcome for Ferino Distillery.”
No further details have been provided.
Cannella said, on the GoFundMe webpage, the shutdown created a hardship. To date, his fundraiser has garnered more than $8,000 of the $15,000 goal.
“With our operations frozen during this time, we face an uphill struggle to cover our operational costs and keep the lights on — power, rent, insurance, legal fees and more,” he added. “We are determined to fight for Ferino, for our team, and ultimately for our local community to try and avoid a closure in the Brewery District, which has come such a long way.”
Patricia Olmstead with the tax department said a state law prevents the department from answering questions for this story.
“The Department is statutorily prohibited from releasing taxpayer information pursuant to NRS 360.255,” she said.
Silver said the state’s regulatory environment should treat businesses consistently “without regard to size or location.”
Governor Joe Lombardo’s office also did not respond to This Is Reno for this story.
Disclosure: This Is Reno is a member of the Chamber.
