In news that could directly impact self-service laundry owners who partner with Connecticut-based drycleaners for their drop-off services, a Connecticut drycleaner recently was arrested and charged with eight counts of failure to pay the state’s 1 percent environmental surcharge for the Connecticut Cleanup Fund.
For the past two years, the Connecticut Department of Revenue has warned the drycleaning industry that it will be “aggressively searching for non-filers and companies under-reporting,” according to a recent newsletter published by the North East Fabricare Association.
“This news comes as a complete shock to me,” said Peter Blake, NEFA executive vice president. “We have been working as a liaison between the DECD, the DOR and the industry in Connecticut to try to fix some of the complex issues the fund has been facing. The department has laid out enforcement strategies, including penalties for non-payers and retroactive payments with interest. We have never discussed criminal filings or the potential for arrests, but by statute, that has always been a possibility. I am shocked that the DOR has taken that direction.
“That being said, this should serve as the sternest of warnings to all members of the drycleaning industry: make sure you are compliant and do it now,” Blake continued. “This means all drycleaners, laundromats that take in drycleaning, tailors who offer drycleaning – everyone that offers drycleaning to the retail customer – is required to pay the fee. Even if the processing is done out of state, but the retail location is in Connecticut, you are required to comply.”
The NEFA is working with business owners who feel they may be in danger of non-compliance. There is an amnesty-type approach available to drycleaners, in which they would be responsible for repayment of any missed taxes plus interest – but with no penalties.
“If the DOR audits you and finds non-compliance, it can go back much farther than it will if you voluntarily report, and will impose severe penalties,” Blake explained. “This has gotten very real, and we want to help all of those who are in potential jeopardy.”
For more information, email Mr. Blake at [email protected].
