Former Washington County Businessman Arrested on Sales Tax Evasion Charges

Thursday, February 04, 2010 | 10:56 am
JOHNSON CITY, Tenn. – Kevin Lee Hubbs, age 47, surrendered himself to Washington County Sheriff’s officials on Wednesday, Feb. 3, on sales tax evasion charges. The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to Hubbs’ indictment and subsequent surrender. Hubbs is the former owner of Mobile Tech “On-Site” Vehicle Maintenance, located in Johnson City, Tenn. Bond was set at $39,000.
On Jan. 11, 2010, the Washington County Grand Jury returned a 12 count indictment for evasion of sales tax in violation of Tenn. Code Ann. Section 67-1-1440(g), a Class E felony. The indictment charged Hubbs intentionally failed to report sales tax totaling $13,546.49 to the state from Jan. 2004 through Dec. 2004. If convicted, Hubbs could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each count.
“The Department of Revenue is committed to applying Tennessee’s tax laws and policies uniformly to all taxpayers to ensure a level playing field,” said Revenue Commissioner Reagan Farr. “The department cannot and will not allow people engaged in fraudulent tax activities to have a competitive advantage over honest businesspeople.”
This case was pursued criminally by the department in cooperation with District Attorney General Tony Clark’s Office. 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 is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2008-2009 fiscal year, the department collected $10.2 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2008-2009 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