Craig Lily Overholt, Colorado Department of Revenue tax compliance agent, made the drive up from Grand Junction to Craig on Tuesday and formally seized the Applejacks Bar and Grill property at 690 Victory Way.
The Department of Revenue seized the property because of $4,185 in unpaid state, city and county sales taxes, according to posted signs.
The building is set to go up for auction at 11 a.m. March 20.
Business owners have 10 business days from Tuesday to pay the balance due and reclaim ownership of the property, said Mark Couch, Department of Revenue spokesman.
If they do not pay, the state will auction the property to the highest bidder. At that point, former owners still may bid.
In general terms, Couch said, a business has two and a half to three months to pay overdue taxes. If a business pays quarterly, then it can have up to four or five months.
In all cases, the Department of Revenue makes face-to-face visits before seizing a property.
An Applejacks owner had no comment.