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Businessman charged with failure to pay taxes
JOHNSTOWN — An Upper Yoder Township businessman and politician faces charges for allegedly failing to pay two taxes over a period of several years.
Dave Gehlman, who operates Berkley Hills Golf Course and is a partner in M&M;’s Hair Design, acknowledges that he has not paid the township’s business-privilege and mercantile taxes.
But Gehlman, who unsuccessfully ran for the state House last year, argues that the situation is the result of a lack of communication.
The charges are not filed against the proper entities, Gehlman says, adding that he never was notified that the taxes were due.
“If you don’t send me a form saying that I owe the tax, I’d never be able to pay the tax,” Gehlman said.
The charges were filed before District Judge John Barron by Pennsylvania Municipal Service Co., the township’s tax-collection agent.
Court papers allege that Gehlman has not paid the mercantile and business-privilege tax on the golf course for 2005, 2007 and 2008.
The city of Johns-town owns the course, but Gehlman operates it under a lease agreement.
Officials also say the same two taxes were not paid for M&M;’s salon, 438 Goucher St., from 2005 through 2008. Gehlman is vice president and secretary of the M&M; corporation; his wife, Marilyn, is president and treasurer.
It is not clear how much is owed to the township. Pennsylvania Municipal Service representatives said they could release no further information on Friday.
Each tax consists of a 1.5-mill levy on a company’s “gross volume of business.”
Gehlman is scheduled to appear before Barron next month for preliminary hearings on the summary charges.
But he does not believe those hearings will be necessary, saying the issue could be resolved out of court as early as next week.
First, Gehlman said neither he nor his accountant ever has received notification that the taxes were due or delinquent for either business.
If such notices have been sent, he said, “I don’t know where they’re sending it.”
Gehlman said he learned of the criminal charges through a call Friday from The Tribune-Democrat.
In the case of the golf facility, he also points out that the charges are filed against Johnstown Municipal Golf Course.
Gehlman said he does not do business under that name.
“The paperwork is incorrect,” he said.
Gehlman said he will challenge the criminal complaints.
But he added that he will pay whatever taxes are due.
“If I owe it, I owe it,” he said.
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