Several recent arrests across South Florida demonstrate the consequences can extend far beyond penalties and interest. Under Florida law, intentionally failing to remit sales tax collected from customers can constitute theft of state funds, potentially resulting in felony charges and imprisonment.
In October 2026, the arrest of well-known South Florida chef Nikol Zarbalas, owner of Hellenic Republic in Coral Springs, brought renewed attention to Florida's criminal sales tax enforcement. According to news reports, Zarbalas was accused of failing to remit approximately $140,000 in sales tax collected from customers between 2021 and 2025. She was reportedly arrested at an Atlanta airport after returning from an international trip and spent nearly two weeks in custody before being transported to Florida. She attributed the original nonpayment to financial challenges experienced while operating her restaurant during the COVID-19 pandemic.
Florida's criminal sales tax enforcement is not limited to large corporations or sophisticated tax fraud schemes. Most business owners never set out to end up in a position where they have unremitted state sales tax. The most common fact pattern is as follows: a business is in compliance with filing and paying Florida sales tax until something causes the business to have cash flow problems. Those cash flow problems cause the business owner to make a difficult decision of which bills to pay. A failure to make payment to a landlord or utility provider could force the business to lose their space, and therefore their ability to operate, so those continue to get paid. The state likely will not reach out for a month or two, so the sales tax account goes unpaid. This creates a snowfall, as bills mount and cash flow continues to falter.
This scenario is especially common in certain industries, such as restaurants and automobile dealers. Fourteen restaurants closed in Miami Dade County alone over the summer of 2026.
Why Is Unremitted Florida Sales Tax Considered Theft?
Florida Statutes Section 212.15 provides that sales taxes become state funds at the moment they are collected. This distinction is critical. Unlike an ordinary business expense or unpaid vendor invoice, sales tax collected from customers does not belong to the business. The business is responsible for collecting and remitting those funds to the state.
Under Section 212.15(2), a person who fails to remit collected sales tax with the intent to unlawfully deprive or defraud the state may be charged with theft of state funds. The statute establishes criminal penalties based on the amount involved. Under $20,000 is a third-degree felony. $20,000 to $100,000 is a second-degree felony, and if the amount exceeds $100,000 then the state can charge the responsible party with a first degree felony. A first-degree felony can carry a prison sentence of up to 30 years, while a second-degree felony can carry a sentence of up to 15 years.
What Should Florida Business Owners Do If They Have Unremitted Sales Tax?
The most important step is to address the issue before it escalates.
Business owners who discover that they have collected sales tax but failed to remit it should consider the following:
- Determine the extent of the liability. Reconcile sales tax collected, amounts reported on returns, payments made, and outstanding balances. The amount actually collected from customers may differ from the amount reported to the Department.
- Preserve relevant records. Sales reports, point-of-sale data, bank statements, accounting records, and communications with the Department may be important in evaluating the liability and surrounding circumstances.
- Understand the difference between civil and criminal exposure. A delinquent tax balance, audit assessment, or collection action does not necessarily mean a criminal offense has occurred. However, allegations involving collected-but-unremitted tax warrant particular attention.
- Seek experienced legal counsel before making detailed statements. Communications with investigators, explanations of how collected taxes were used, and decisions about amending returns or entering payment arrangements can have significant legal consequences.
- Evaluate available resolution options. Depending on the facts, options may include correcting returns, addressing outstanding assessments, negotiating payment arrangements, or evaluating applicable disclosure procedures. Not every taxpayer or liability qualifies for voluntary disclosure or other relief.
For Florida businesses facing unpaid sales tax liabilities, early legal guidance can make a meaningful difference.
Ribeiro Law focuses on Florida sales and use tax matters, including consulting, audit defense, and resolving tax disputes with the Florida Department of Revenue. Businesses concerned about unremitted sales tax should seek advice promptly to understand their obligations, available options, and potential exposure.
This article is provided for general informational purposes and does not constitute legal advice. Criminal allegations discussed above are not findings of guilt.
