The Bier Abbey on lower Union Street has been shut down by the state for failing to pay nearly $700,000 in sales tax.
Officials with the state Department of Taxation and Finance taped orange signs to the popular restaurant at 613 Union St. this afternoon that say "SEIZED" in big black letters.
The state also had a locksmith on hand who changed the locks to the restaurant.
The sign reads, "Warning. This property has been seized for nonpayment of taxes, and is now in the possession of the state of New York."
The sign also says that any person who attempts to enter the property would be prosecuted.
James Gazzale, a spokesman with the tax department, confirmed that the business was seized on Tuesday.
He said the Bier Abbey owes $698,597.72 in sales tax since May 2015, which includes penalties and interest. The penalty is an amount equal to twice the amount of the tax not paid, plus 14.5 percent interest on the unpaid tax, according to the tax department's website.
The business will be closed until the owner shows good faith in paying off the tax debt, Gazzale said.
"Even after we seize the business we continue to work with the business owner to hopefully help them find a way to help their tax debt, he said.
The state officials were assisted by Schenectady police in the seizure.
The owner, George Collentine, was not at the restaurant during the seizure and could not be reached for comment.