By Sharyn L. Decker
Lewis County Sirens news reporter
CHEHALIS – Criminal charges have been filed against the co-owner of a Lewis County business who allegedly collected and kept at least $46,000 in sales tax.
Karina J. Rife, who is also accountant for the builder BK Rife Enterprises LLC, is accused of knowingly filing falsified tax returns from 2007 to 2013 to hide the company’s business activity from the state.
The Washington State Department of Revenue said in a news release today theft charges have been filed in Lewis County on its behalf.
The Department of Revenue collects retail sales sales tax and makes sure it is properly distributed to local and state government.
Agency spokesperson Kim Schmanke states Rife admitted the business used the money to pay its bills. The state agency says BK Rife Enterprises was also doing business without a valid business registration during that period, which is a felony. The registration had been revoked for unpaid taxes.
Retail sales tax is the largest source of state revenues, supporting vital services that benefit Washington’s residents and the economy, according to Schmanke.
Businesses that collect retail sales tax do so “in trust” for the state and must remit those taxes to Revenue by the due date of the tax return for the reporting period. Failure to remit the taxes constitutes theft, Schmanke states.
Rife has been summonsed to appear before a judge in Lewis County Superior Court on Friday afternoon.