South Dakota Operators Defeat Proposed Coin-Op Tax Structure

PIERRE, SD -- The Music & Vending Association of South Dakota scored a victory in the state Legislature here by defeating a bill that would have replaced the longstanding "sticker" licensing of coin-operated amusement devices with a sales tax.

Rejected by a 38-30 floor vote in South Dakota's House of Representatives on Jan. 27, HB 1053 would have eliminated the state's 30-year-old "Pac-Man Tax" licensing format in favor of an onerous sales taxation system. Licensing stickers, which are issued by the Department of Revenue, currently cost operators $12 a year per machine.

"The members of the association are thankful the House of Representatives defeated this bill," said MVASD executive director Deb Mortenson. "We worked hard to get our message out that this new tax would have been difficult to absorb in our members' businesses."