News from New York State Department of Taxation and Finance

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“Operation Gold Rush” Targets Tarnished Jewelers

Eleven Nassau County Jewelry Stores Accused of Not Collecting Sales Tax

ALBANY, NY (02/11/2008; 1803)(readMedia)-- New York State Commissioner of Taxation and Finance Robert L. Megna today announced that the Tax Department is conducting a joint investigation with Nassau County into the operations of jewelry stores that offered sales-tax free purchases to undercover investigators if they paid with cash. The investigation, known as “Operation Gold Rush,” identified eleven jewelry stores to date and is on-going.

Commissioner Megna said, “The Department of Taxation and Finance considers sales-tax free cash transactions to be a serious offense. Retailers who engage in such practices harm their communities by denying government the revenue needed for vital education, health and public safety programs, as well as harming their law-abiding competition that play by the rules and collect the tax. Dishonest retailers should know that we will utilize the full authority of the Tax Department, local police and criminal prosecutors to ensure the law is obeyed, taxes are collected and fairness in the marketplace is restored.”

The following Nassau County jewelry stores had search warrants executed upon them. Cash registers, computers and sales records were among the items seized.

Maharani Jewelers, 1620 Hillside Avenue, New Hyde Park East West Jeweler, 10 West Cherry Street, Hicksville Aainaa, 99-101 Broadway, Hicksville L.I. Jewelry exchange, 451 Old County Road, Westbury Contempo Jewels, 486 Hempstead Turnpike, West Hempstead The Jewelry Garden, 322 Nassau Boulevard, Garden City South Frucci Jewelers, 18 Nassau Boulevard, South CR6, Garden City Eli’s Corner, 2792 Long Beach Road, Oceanside Genesis Jewelers, 3447 Merrick Road, Wantagh Solomon’s Jewelers, 74 Manetto Hill Plaza, Plainview Mayfair Diamond’s and Fine Jewelry, Woodbury Village, 7497 Jericho Turnpike, Woodbury