Georgia – Exemption for Coin-Operated Amusement Machines Amended

SALT Report 2371 – The Georgia State legislature enacted legislation that amends the sales tax exemption for certain coin-operated amusement machines. Previously, a “bona fide coin-operated amusement machine” was defined as a machine:

  • That is used by the public to provide amusement or entertainment, the operation of which requires the payment of, or the insertion of, a coin, bill, money, token, ticket, or similar object, when the result of the operation depends wholly or partially on the player’s skill, regardless of whether the machine provides an award to a successful player, and
  • That can be legally shipped interstate under federal law

House Bill 487 adds “card” to the list of items that can be used as payment to play one of these machines. The addition of “card” expands the scope of the gross revenues from bona fide coin-operated amusement machines that are subject to sales and use taxes and the per-machine annual permit fee for Class A and Class B coin-operated amusement machines.

Additionally, the Bill is intended to facilitate the enforcement of the sales tax obligations imposed on bona fide coin operated amusement machine businesses as well as to prevent unauthorized and untaxed cash payouts.

The Bill was effective April 10, 2013.

For Further Information

Georgia State Legislature – House Bill 487, Laws 2013