Convenience store ordered to shut down

PROVIDENCE, R.I. (WPRI) – The City Board of Licenses has shut down a local convenience store accused of selling cigarettes without paying taxes .

Richmond News was ordered closed on Thursday when the board revoked proprietor Walid Zahran’s three licenses: to sell tobacco, food, and on holidays.

This is the first time that the city has taken away the privilege to sell tobacco under a 15-month-old tobacco-sales licensing ordinance.

Eyewitness News learned that Rhode Island is loosing thousands of dollars to retailers who try to cheat the system and pocket the cash.

"If we don't take this kind of extreme action, the state is in jeopardy of not getting tax revenue it badly needs,” said Chairman Andrew J. Annaldo of the Richmond News decision.

Andrew Sullivan from the Division of Taxation says that dishonest retailers often buy cigarettes from Virginia where the tax is just 30 cents, then scratch the Virginia name away and sell the cigarettes at Rhode Island prices, pocketing more than 2 bucks a pack. Virginia's stamp is almost identical to Rhode Island's.

The 52-year-old Zahran has pleaded no contest in district court to a misdemeanor charge of selling unstamped cigarettes.