Mattress World and Typhoon! hit tax & labor issue woes
By Oregon Tax News,
Alleged tax and labor law violations potentially costing millions of dollars are forcing Mattress World and Typhoon! Inc., two well-known Oregon retailers, to close their doors. Roughly 300 jobs will be lost.
In the case of Mattress World, the state of Washington slapped the Portland-based company with a $1.7 million unpaid tax bill for failing to pay sales tax on items delivered and installed in Washington. Several Mattress World stores are located just across the border from Washington, where shoppers can easily take advantage of Oregon’s no sales tax. According to a KATU news report, however, Washington requires out-of-state companies to pay sales and other taxes when they operate as a “nexus”—meaning the company resides out-of-state but delivers products in Washington. That news allegedly caught Mattress World owner Sherri Hiner by surprise in 2009 when she was first notified that her company qualified as a Washington business.Read the full article and discuss it »