California Sales Tax, Penalties Upheld for Restaurant, Nightclub

May 4, 2026, 7:29 PM UTC

A Palm Springs restaurant and its adjacent nightclub owe additional sales tax and penalties because California proved they deliberately underreported their sales by 40% to 60%, a state tribunal ruled in two opinions released Monday.

Sundown Entertainment Group Inc., doing business as The Tropicale Restaurant & Lounge, owes $1.93 million in tax and penalties, plus interest, for 2011 to 2017 as a result of the California Office of Tax Appeals ruling marked pending precedential. The Copa Room owes nearly $200,000 in tax and penalties, plus interest, for 2013 to 2017 under a related, nonprecedential opinion.

The California Department of ...

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