Denver’s Raíces Brewing Company Shuts Down Due to Outstanding Taxes

Raíces Brewing Company Closure

Known for its Central and South American brews and culture, the West Colfax brewery revealed its unexpected closing on its website, citing mounting tax debts.

In their letter to customers, Raíces Brewing Company highlighted an unexpected tax known as the Personal Property Tax imposed by the City of Denver’s Department of Taxation, which levies taxes on a business’s furniture and equipment.

The Tax Debacle with Denver’s Authorities

However, according to city officials, the brewery’s outstanding sales taxes largely contributed to the tax debts, which amounted to $98,703.48, with $65,640.55 being back taxes that Raíces had failed to remit to the city. Laura Swartz, spokesperson for the Department of Finance, clarified that the personal property tax was a minor part of the brewery’s tax obligation.

Additionally, the brewery owes approximately $10,800 in business personal property taxes. Swartz emphasized that the business personal property tax is a state tax which all Colorado counties are mandated to administer and collect. This tax accounts for about 7% of Denver’s property tax base according to a memo from legislative staff which can be found here.

Failed Attempts to Settle Debts and Accusations Against the City

Raíces Brewing Company had previously agreed to a biweekly payment plan with the city to settle its tax debts and had even organized a fundraising event called CORAZÓN in March. However, the financial strain was considerable, severely affecting their cash flow during the low season, as the industry continues to recover from recent global economic challenges.

The brewery also alleged harassment by “certain city employees from this particular department” and claimed that the city demanded an additional $30,000 in back taxes in June, a figure that has since grown to six figures due to interest and penalties.

Swartz refuted these allegations, stating that city involvement only came into play when businesses failed to remit charged sales tax to the city after repeated attempts to collect these taxes.

The Aftermath of Raíces Brewing Company’s Closure

Raíces ended its letter by expressing its gratitude to its customers and employees, and apologized to those with bookings for upcoming events. José Beteta, the owner of Raíces, did not immediately respond to requests for comments.

Denverite editor Andrew Kenney contributed to this article.