Auto repair business owner sentenced for tax theft, filing a false tax

OLYMPIA, Wash.March 18, 2026 -- A Shelton auto repair business owner was sentenced to six months in jail after pleading guilty to pocketing sales tax she collected over a four-year period.

Marlo Brown, co-owner of Brown's Garage, pleaded guilty to one count of filing a false tax return and first-degree theft after being charged by the state Attorney General's Office with underreporting the amount of sales tax collected and stealing sales tax.

Brown's husband and co-owner of the business, Phillip Brown, pleaded guilty as a co-defendant in the case for filing a false or fraudulent tax return. He was sentenced Sept. 29, 2025 to 30 days of home monitoring. Marlo and Phillip Brown also were ordered to pay back a combined $36,875 to the state.

Marlo and Phillip Brown have owned an auto repair shop at several locations in Shelton since 2015. After failing to file tax returns and paying taxes owed, the Department of Revenue and the Attorney General's Office launched an investigation into the Brown's finances. The investigation found:

• Marlo Brown had reported business income under "wholesaling" to avoid paying the sales tax they had been collecting.

• The Browns had closed and opened multiple business accounts and continued to operate their business after the Department of Revenue filed tax warrants with the court and revoked their business licenses.

• The business brought in much more than had been reported on tax filings and failed to remit thousands of dollars in sales tax between 2017 and March 2022.

Collecting but not remitting sales tax is illegal under Washington state law. Businesses that sell retail goods and services in Washington are required to collect sales tax from customers and send it to the state.

Retail sales tax is the largest source of state revenue and funds vital services that benefit Washington's residents and economy, including schools, health care, and more.