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Special Investigations News Release

For Immediate Release:  Jan. 15, 2014

Former Humboldt Business Owner Pleads Guilty to Sales Tax Evasion

HUMBOLDT - Rosie M. Davis, the former owner of Mid-Town Grocery in Humboldt, Tenn., pled guilty to two felony counts of sales tax evasion this week.

The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the guilty plea of Ms. Davis, age 69.

Monday, Gibson County Circuit Court Judge Clayburn Peeples accepted Davis’ guilty plea to two Class E felony counts of sales tax evasion.  Davis was sentenced to two years for each count, for an effective sentence of four years. Davis’ sentence was suspended, and she was placed on probation for two years.

In addition, Davis was ordered to make a lump sum payment of $10,000 toward the amount of taxes owed and repay an additional $32,779.53 to the Tennessee Department of Revenue in monthly installments. Davis must also report to the Humboldt law clerk every six months for a review of her payment status.

“These cases underscore our commitment to rigorous and fair administration of Tennessee’s tax laws,” said Revenue Commissioner Richard H. Roberts.

The Department of Revenue pursued this criminal case in cooperation with District Attorney General Garry Brown’s office. Citizens who suspect violations of Tennessee’s revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).

The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws and the collection of taxes and fees associated with those laws. The department collects about 87 percent of total state revenue. During the 2013 fiscal year, it collected $11.7 billion in state taxes and fees and more than $2.2 billion in taxes and fees for local governments.  To learn more about the department, visit www.TN.gov/revenue.

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