July 2, 2013
Dear Fellow State Associations and NAMA Members:
RDM Sales and Service Inc. v. Indiana Department of State Revenue (Case No. 82T10-1001-TA-3) is currently pending before the Indiana Tax Court. This case disputes the imposition of taxes on vending machine sales in a number in ways. Specifically, that the application of sales tax on certain items sold through a vending machine, that are not similarly taxed when sold in a convenience or grocery store, is discriminatory and unconstitutional. The case, relating to sales in years 2006, 2007 and 2008, and is expected to go to trial this fall.
The Indiana Tax Court is a unique venue that has only been adopted by a few states. In the state of Indiana, a tax law can be challenged in a non-jury court with a judge having sole decision authority. Such is the case in the above-mentioned lawsuit filed against the State of Indiana, by an Indiana Vending Council member, RDM Sales and Service of Ferdinand, Indiana. Rob Schlachter, President of RDM Sales and Service, has chosen this tax court to challenge what he believes is a discriminatory practice of taxing 20oz. bottled water sold through a vending machine and not taxing it in any other sales channel.
This case only deals with a 20oz. bottle of water. The fact that there are no other factors, other than bottled water, included in this case has the entire Board of Governors for the Indiana Vending Council extremely optimistic for a favorable decision by the Tax Court Judge. If this is the case, we believe all of the discriminatory taxing practices within Indiana against the Vending Industry will begin to disappear. We believe a favorable opinion in this case could affect taxing practices in other states.
The purpose of this letter is two-fold. First, to inform the Industry of this legal action and second, to educate the industry on the fact that lawsuits cost money and that the financial burdens of this type of action would be life threatening to many of our companies. We have spoken with the attorneys for RDM and have decided to begin a fundraising campaign to assist with RDM's legal costs. Our fundraising goal is $50,000.00. We believe that this amount will allow us to move forward to a successful decision.
We are reaching out to our friends in the industry and asking them to consider donating to this important cause. Anything you can donate would be appreciated: $5, $50, $100, or $1000. Every donation will help us get closer to the goal.
Please make checks payable to the RDM Victory Fund and mail them to: Indiana Vending Council, PO Box 56074, Indianapolis, IN., 46526.
The IVC will oversee the fund and make sure all funds are forwarded to the attorneys for RDM.
Thank you for your time and consideration of this request. Should you have any questions or concerns, please contact me at my cell phone number listed below.
Jeff Snyder - CEO
Snyder Food Services, Inc. and
President of the Indiana Vending Council
3275 N. Old State Rd. 3
Kendallville, In. 46755
260 347-4802 business
260 302-6338 cell