“We aren’t trying to ask for forgiveness from a tax bill,” Hardywood’s co-founder and president, Eric McKay, said in an interview. “We feel we don’t owe this tax because we were told we didn’t need to pay it and we never collected it from customers.”

McKay said Hardywood has collected and paid meals taxes since August 2013. He added that paying the back taxes would slow the company’s growth.

“Everything we make goes into hiring more people and investing in equipment, both of which create more tax revenue for the city,” he said. “We would likely have to tap into our equity line to make this payment, and hold off on new hires or new equipment for a while.”

Hardywood has offered to settle the dispute with a payment of $5,000. The city said it is willing to waive an additional $9,500 in late fees and penalties, but only if the brewery pays the $50,000 within 10 days.

Tammy D. Hawley, press secretary to Mayor Dwight C. Jones, said the matter is “very fluid.”

“It is also important to note that state law does not give local tax officials authority to deviate with respect to collecting meals taxes,” Hawley said.