Tax dept. shuts down theaters temporarily
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By Brent Curtis Herald Staff - Published: January 19, 2008
The owners of the Plaza Movieplex in Rutland and Westway Cinema in West Rutland are once again in financial straits — this time with the state Department of Taxes and the owners of the Rutland Shopping Plaza.
The two theaters were shut down temporarily Thursday by the state after it learned that Cinema North Corp., which owns the two theaters, was operating without a license to collect state meals, sales and use taxes.
"They were not in good standing with respect to their taxes and technically were not licensed," said Brenda Vovakes, director of compliance with DOT.
The theaters — one located in the Rutland Shopping Plaza, the other at the Westway Plaza in West Rutland — were allowed to reopen on Friday when the Cinema North owners obtained the necessary licenses.
"I think it's important to make clear that they are in good standing with us now," Vovakes said. Vovakes said she couldn't say how long the theaters had been operating out of compliance or how much the corporation might owe — if anything — in taxes to the state. "There are confidentiality provisions in the tax statutes that restrict what I can talk about," she said.
Cinema North president Gerald Couture III and business partner Kipp Mullin could not be reached for comment on Friday.
But if the taxes owed to the state mirror rooms, meals and entertainment taxes owed to Rutland City, the sum could be substantial.
According to the city Treasurer's Office, the Movieplex hasn't paid the 1 percent tax — piggybacked on the state rooms and meals tax — since May 2007.
In addition, Cinema North owes the city $445 in delinquent personal property taxes and $1,770 in delinquent water and sewer expenses.
However, the company's biggest overdue bill rests with Centro Heritage, the company which owns the Rutland Shopping Plaza.
For the third time in just a few years, Centro Heritage has initiated eviction proceedings in Rutland Superior Court against Plaza Movieplex for $102,741 in back rent, penalties and interest. Cinema North has owned the nine-screen theater in the city's downtown since 1994. The company's lease with Centro Heritage isn't set to expire until 2010, according to court records.
In addition to the delinquent rent, Centro Heritage is suing to recover fees paid after two checks written by Cinema North in the amount of $27,117 were allegedly returned for insufficient funds when Centro Heritage officials tried to cash them last year.
Ed McCormack, who owns Westway Plaza, said Westway Cinema is paid up on its rent.
Contact Brent Curtis at brent.curtis@rutlandherald.com.
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