The Washington State Department of Revenue announced today a Bellevue home builder who didn’t turn in the nearly $630,000 in sales tax received from customers has received a one-year jail sentence he can serve through work release.
Grey T. Lundberg was charged with 13 counts of sales tax theft in 2010 and agreed to repay the funds in August of that year, but then failed to keep up with the payment plan, according to the revenue department.
The CMI Homes owner failed to file state tax returns from the time he started the company in July 2006 to December 2007, only doing so after the DOR began auditing his business. Even then, he was not turning over collected sales tax.
He quit making payments two months after he was granted a reduced balance in King County Superior Court in March 2014.
According to the revenue department, retail sales tax is the largest state revenue source.
King County Superior Court Judge Ronald Kessler imposed the one-year sentence, allowing Lundberg to finish his time through the work release program. He also must pay the back taxes, as well as penalties and interest.