"Tennessee's tax structure depends on taxpayers voluntarily complying with the laws," said Revenue Commissioner Loren L. Chumley. "Taxpayers who collect but intentionally do not remit sales tax breach the public trust. This arrest underscores our commitment to collecting all taxes due the state of Tennessee."

Martin was indicted by the Montgomery County Grand Jury on 34 counts of sales tax fraud in violation of Tenn. Code Ann. Section 67-1-1440. Bond was set at $10,000. If convicted, Martin could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each count. Additionally, civil taxes, penalties and interest will be due the state.

These cases are pursued criminally by the department in cooperation with local district attorneys general.

Citizens who suspect violations of Tennessee's revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).

The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2004-2005 fiscal year, the department collected $9.6 billion in state taxes and fees. In addition to collecting state taxes, $1.7 billion of local sales tax was collected by the department for local governments during the 2004-2005 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.Tennessee.gov/revenue.

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