Southampton Publick House, a popular Southampton Village restaurant and microbrewery, was seized Wednesday by the New York State Department of Taxation and Finance after failing to pay more than $110,000 in taxes since March 2016, a department spokesman said.
The department changed the locks and placed red “seized” signs in the windows after the business — also known as McSully Enterprises Inc. — accrued $111,744.69 in outstanding tax debt, said department spokesman James Gazzale.
The restaurant will remain closed until the department can come to a “mutually beneficial resolution” with the owner, which could include a payment plan, he said.
“Seizing a business is always our last resort,” Gazzale said Thursday. “Long before it comes to that, we are communicating with business owners, letting them know there’s this outstanding tax debt.”
Donald Sullivan, CEO of McSully Enterprises, said the restaurant, at 62 Jobs Lane, will resolve the “current situation” by the end of the week.
“We anticipate being open within the next few days or earlier,” he said. “That’s all I have to say at this point.”
Village Trustee Richard Yastrzemski said it is unfortunate to see the “community-oriented” business — one of the few open year-round — shuttered in the middle of the summer.
“If they’re going to try to get money back, this is where you get money back: in the height of summer,” he said Thursday. “The business district knows you have these 10 weeks between Memorial Day and Labor Day . . . when the money is made to carry them through the bulk of the year.”
Publick House has seven open tax warrants, six for sales tax and one for withholding tax, Gazzale said.
A sales tax warrant is typically issued for businesses that do not pay the state properly for the sales tax collected from its customers, while a withholding tax warrant is often used for businesses that do not remit the proper amount of taxes that are withheld from employees’ paychecks, Gazzale said.
The tax department issued the first warrant in October 2016 for $54,460.28 in sales tax and the last warrant on June 28, 2017, according to tax records. The restaurant also received a warrant for $39.94 in withholding tax in November 2016.
The sales tax is owed from March 2016 through May 2017, and the withholding tax is owed from April 2016, Gazzale said.
Sullivan announced in April 2016 that the restaurant would relocate from 40 Bowden Square, where it operated for 20 years.