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Rainbow Inn Resort at Hauser Lake closes

Tue., Dec. 20, 2005

The Rainbow Inn Resort, a watering hole on Hauser Lake, closed earlier this month – just before the Idaho Tax Commission seized its liquor license.

Dec. 8 was the restaurant and bar’s last day of operations, manager Cindy Osborne said.

Since May, the state tax commission has filed five liens totaling $11,275 against the Rainbow’s owner, Robert LaRue. The liens were for back sales taxes and failure to withhold state income tax from employees’ paychecks, according to the state.

A liquor license is considered an asset, so the state seized that as well, said Tony Nettles, bureau chief of the tax commission’s field services.

LaRue could not be reached for comment Monday. Osborne, his daughter, said he plans to retire and is working to straighten out his financial affairs.

The owner of the Rainbow building lives in California. He may reopen the restaurant and bar under different ownership, Osborne said.

The Rainbow is in a former residence built in the late 1800s. The building became a lake resort and has operated as a restaurant and bar since World War II.


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