Revenue Department explains why it shut down spa business

MERRIAM, Kan. - The Kansas Department of Revenue released new information Tuesday surrounding the sudden closure of Spa Heaven in Merriam, Kan.

Last week, the state agency along with the Johnson County Sheriff's Department executed tax warrants on the owners, Bill and Melissa Carter, due to $59,784 in unpaid taxes.  The agencies seized everything from inventory and personal property assets to bank accounts and cash.

In a statement to Call for Action Tuesday, the Revenue Department said it took the action after attempts to collect the state tax failed.  

“After several unsuccessful collection attempts, or lack of response from the taxpayer, the Department is forced to take aggressive warrant execution action of seizing assets, which in this instance resulted in the business being closed,” the agency reported.

Customers like George Schergen now wonder what happens next. 

"It's a little scary," Schergen said Monday. 

He paid $6,262 for a new hot tub in April.  The owners tell him the hot tub is still in California at the manufacturer. 

As for customers, the Department of Revenue said, "We are currently working with the owners’ representatives to respond specifically on product issues."

The seized assets will be sold at public auction to pay toward delinquent tax.

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