Illinois Village Taxes Arcade Out of Business

January 15, 2009 -

An Illinois village's tax on video game machines has forced a small arcade to abandon its games, according to a report in the Courier News.

The Name Your Game store, located in the village of Hampshire, is described by its owners as a "favorite wholesome after-school hangout" that, in addition to games, offers snacks, collectible cards and clothing.

But proprietors Bob and Gina Pearson claim that a steep village tax of $250 annually per machine led them to dispose of their 10-game inventory. For local kids that means no more Glow-in-the-Dark Air Hockey, NASCAR Racing or Ms. Pac-Man. Said Gina Pearson:

We didn't renew the licenses because the machines don't even make what you charge in these astronomical fees... The game companies tell us this is one of the highest fees in Illinois. We wonder if the village really researched how big this should be or if they just slapped a number on it...


We had become a pretty big hangout for kids after school and weekends. But not having the video games this year has made a big impact in just the first two weeks.

A village official told the Courier News that officials set the fee high with the understanding that the game machine distribution companies pay. However, Gina Pearson indicated that such arrangements only occur with establishments which serve alcohol.


Comments

Re: Illinois Village Taxes Arcade Out of Business

Did you know that half the things on this list didn't even exist 100 years ago?

 

Best keep your wits about you: The gears of life are always spinning, and ignorance eventually means you'll get caught in them.

Best keep your wits about you: The gears of life are always spinning, and ignorance eventually means you'll get caught in them.

Re: Illinois Village Taxes Arcade Out of Business

What do you expect?

There's monetary pressure on places like this and MMORPGs to extract money from them. This should be a warning to people trying to tax virtual transactions-there is no extra money to wring from these places. However, in a government that spends over a trillion annually, there are plenty of cuts to be made.

I.E. stop taxing citizens directly and require businesses to collect at the payroll level. All money transactions in the U.S. eventually pass through the payroll level. The difference is there are 302 million U.S. citizens, requiring a huge IRS to manage, and only 6 million businesses.

Congrats, there's at least 10 billion annually in reclaimed revenue right there. More than if they directly owned the top 5 MMORPGs with no overhead. (Don't know about second life, so not counting that one)

Also saves a ton of grief, of course, we can look forward to more inefficient multitudes of miniature taxes that nibble away at our funds. It's much like, instead of getting a hair cut, having individual hairs plucked then the remainder bent back into the empty hair follicles and snipped one by one.

"But what about state and local taxes?"

Example taxes done at a business:

Total employee pay : 40,000

Federal tax 20% : $8,000

State tax 15% : $6,000

Local tax 5% : $2,000

Meaning there would only be 3 taxes to be paid, and of course the numbers wouldn't be that clean, but it'd be much easier than the ugly BS we have today. Of course the idea would need refinement, and import/export fees would need to remain.

Re: Illinois Village Taxes Arcade Out of Business

Mmm I think a 25% sales tax on everything sold(service or goods) would be better, the breakdown would be 16/6/3  one simple and effianct system with half the bureaucracy which would save the government billions alone.


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Re: Illinois Village Taxes Arcade Out of Business

Sometimes, I think that Illinois govenment thinks that they don't need Arcades because they are run by adults who don't understand Arcade games...

They go as far as putting a TAX on arcade machines that run them out of business...

Sad that they do that to something so special to videogaming....

 

 

TBoneTony

Re: Illinois Village Taxes Arcade Out of Business

At one time arcades and blowing alleys are generate large revenue thus fees towns and cities place on them are a way for them to gain money from them. However as time goes by the home entertainment center replaces arcades and even gnaws on what theaters bring in. High fees if left un altered for the items will only close more business and end that stream of revue for the town or city.


Gore,Violence,Sexauilty,Fear,Emotion these are but modes
of transportation of story and thought, to take them from
society and you create a society of children and nannys.


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Re: Illinois Village Taxes Arcade Out of Business

So I wonder how much higher the youth crime rate is now...

Or how many "teen pregnancies" thier little town will encounter in the coming months...

Or how many of these kids will double their weed intake now that there is no distractions.

Salty

Salty

Re: Illinois Village Taxes Arcade Out of Business

According to the city I live in Arcades, Movie theaters, Hobby stores ect which are popular among younger people, cause an increase in crime and are not wanted in the city.

~Weatherlight~

~Weatherlight~

Re: Illinois Village Taxes Arcade Out of Business

Bullshit. Not calling bullshit o nthat law, but their reason for it.

Re: Illinois Village Taxes Arcade Out of Business

I know of two hobby shops, an arcade, a collectibles shop and a gaming/arcade place that were all run out of the city due to tax hike and additional burdens put on them by the city because the city didn't want them there. The nearest gaming center to me where you can actually play any type of video/arcade game is 40 minutes away and they sell phones during the day. The only real exception being the movie theaters and they will have all of 3 games, a pinball machine, a shooter (like big game hunter), and race car game. Thats it. 

At least these guys it doesn't seem like the city did it intentionally more as a side effect of being greedy.

~Weatherlight~

~Weatherlight~

Re: Illinois Village Taxes Arcade Out of Business

I'm in Illinois, and I am deeply embarrassed by the government in my state.  First Rod Blagajgavojgavoajogjgavoich (however the fuzuck you spell his name) and now this.

Re: Illinois Village Taxes Arcade Out of Business

Yeah, I'm not surprised that this happened in the state Blagojevich was running.  I find it funny how he continues to maintain his innocence.  "But I didn't do anything!"  "Yeah, because you got caught planning it first, jackass!"

"There is no sin except stupidity." - Oscar Wilde

"De minimus non curat lex"

Re: Illinois Village Taxes Arcade Out of Business

I was thinking more of the fact that it is famous for it's machine politics.

Re: Illinois Village Taxes Arcade Out of Business

Anyone here living in Illinois? Because of the whole "alcohol" angle I'm wondering if this law was really intended to tax video poker machines rather than videogame arcades. I know that there is riverboat gambling in Illinois but can bars have video poker? http://www.popularculturegaming.com

Re: Illinois Village Taxes Arcade Out of Business

You have to remember that the older arcade games don't turn the money like they used to.

That being said, to those who still appreciate the joy of watching a yellow circle eating meds while getting chased after by bed sheets, this is a very sad event.

Now that the games have been removed, kids will become violent and not be able to tell fact from fantasy and the crime rate will go through the roof.

Next we will get a report that says the games at the arcade made the kids violent.

Praetorian

"I've been told I'm the resident skeptic, but I wouldn't believe that."

ECA Seattle Chapter

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Re: Illinois Village Taxes Arcade Out of Business

Seriously?  I would inform the kids that come of whats going on, and have their parents get involved.  From there, at the next town meeting, they would bring up the issue of taxing the machines.  That way, they have a chance for the officials to realize that they are messed up big time...maybe even pay back some of the money from the taxes.  If they actually go through with it, they need to act soon.

The only place, today, that sells alcohol along with having arcades is Dave & Busters...as far as I know.

Re: Illinois Village Taxes Arcade Out of Business

There's a Dave & Busters like thing called Main Event. I haven't been there to know if they have alcohol.

Nolan Bushnell also has something, but the name escapes me at the moment

 

Re: Illinois Village Taxes Arcade Out of Business

Quite a few bars here in Alabama have arcade machines, and pool tables and such. Not sure what they get taxed for it, but It's $1.00 a pool game now when it used to be $.50.

Hunting the shadows of the troubled dreams.

Hunting the shadows of the troubled dreams.

Re: Illinois Village Taxes Arcade Out of Business

See my post above.  It sounds like there is a lack of specialization between types of businesses and what they offer.  Plus idiocy on the part of the game companies.  Yes, even an hour later I'm still pissed off.  >:(

Nightwng2000

NW2K Software

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Re: Illinois Village Taxes Arcade Out of Business

Did you know that the following taxes didn't exist 100 years ago?

Accounts Receivable Tax
Building Permit Tax
CDL License Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges (tax on top of tax)
IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Tax
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Service charge taxes
Social Security Tax
Road Usage Tax (Truckers)
Sales Taxes
Recreational Vehicle Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Tax
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Non-recurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charg e Tax
Utility Tax
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax

Sortableturnip's Law: As an online discussion of video game violence grows longer, the probability of a comparison involving Jack Thompson approaches 1

Re: Illinois Village Taxes Arcade Out of Business

You forgot about the biggest tax of them all. Income tax. Income tax came around due to the world wars. It was suppose to be "temporary"

Re: Illinois Village Taxes Arcade Out of Business

RTFC. It's there.

I think he's off on the 100 years on a bunch of those though.

 

Re: Illinois Village Taxes Arcade Out of Business

Civil war actually.

Re: Illinois Village Taxes Arcade Out of Business

Oh, I guess the american income tax came much earlier before the canadian income tax or something because that's what my history teacher said, which is more reliable then wikipedia.

Re: Illinois Village Taxes Arcade Out of Business

Another reason for the Fair Tax.

Re: Illinois Village Taxes Arcade Out of Business

I don't see your point, or how it relates to this business having to pay an additional $2500 in taxes, just because it has some arcade machines.

Re: Illinois Village Taxes Arcade Out of Business

GP, sorry to complain as I don't do so often, but your final paragraph is confusing.

These are from the Courier's article itself:

"Trustee Jan Kraus said village officials set the fees several years ago, and set them so high partly because the companies that own the machines usually pay any tax."

Ok, well, zap the the owners of the companies that own the machines.  Does that mean that the small business is RENTING the video game machines?  I'm a little confused on that.

"Pearson said her family contacted six other game companies, and none would pay the tax unless her establishment served alcohol."

Again, a little confusing.  Are they contacting the game companies who they will RENT the video game machines from?  If so, then I've got a MAJOR, BIG, HONKIN' BEEF with the video game companies.  It really, really ticks me off about that requirement.

"But Village Administrator Eric Palm said the restaurants around the I-90/Route 20 interchange "each have several amusement devices. Some of them have more than 10 devices. To my knowledge, there is no liquor served at these locations, either, and in most cases the game companies seem to be paying the fee. We don't get the checks from Travel America or from BP.""

Ah, but what KIND of video games are in those places?  Are we talking arcade games (Ms Pacman and Air Hockey) or video poker/cards (even if they offer points, prizes, money, or something along those lines)?  I've seen some restaurants with a type of multi video game system that has includes cards and a few arcade games that is paid for and played for fun only.

But, at the same time, I think the tax needs to have the purpose of the business distinguished as well.

"The companies that own the machines will maintain them and split the proceeds 50-50 with the store owner. But that $250 fee adds up to a lot of kids' quarters, she says."

Ok, so they DO rent the machines.  Yeah, I'm becoming more and more pissed off at the game companies right now.

""We had become a pretty big hangout for kids after school and weekends. But not having the video games this year has made a big impact in just the first two weeks." "

yup.  I haven't looked up info on Hampsire, so I don't know population numbers or what other businesses are in Hampshire (community centers, boys and girls clubs, other potential non-profit free or paid for hangouts, etc), but I'm willing to bet SOMETHING is going to give.  Either other businesses are going to see a boom in kids being signed up, maybe being overburdened, or Hampshire is going to see a boom in the number of kids hanging out on the streets.

No, the loss of a video game hangout will NOT mean the end of the world or even the end of Hampsire or a massive rise in the crime rate or some other exaggerated nonsense.  But there WILL be an impact, perhaps for the negative, for Hampsire and the youngest of the population.

Nightwng2000

NW2K Software

Nightwng2000 has also updated his MySpace page: http://www.myspace.com/nightwing2000 Nightwng2000 is now admin to the group "Parents For Education, Not Legislation" on MySpace as http://groups.myspace.com/pfenl

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Re: Illinois Village Taxes Arcade Out of Business

hmm....take the income taxes on the machines and have a steady, albeit not substantial, source of income and a venue for the youth to go and have afterschool activities provided by a community rather than having to pony up coin for afterschool activities at the taxpayers expense, OR...tax the living hell out of said venue and watch revenue go out the window along with damaging the capacity of an after-school venue due to a hideous lack of foresight.  This is actually worse than the idiot in South Carolina trying to outlaw profanity.  The SCotUS has already ruled on the profanity issue, however there are no pending lawsuits or precedence set on mitigating stupidity in elected officials.

To be persuasive we must be believable; to be believable we must be credible; credible we must be truthful. Edward R. Murrow

To be persuasive we must be believable; to be believable we must be credible; credible we must be truthful. Edward R. Murrow

Re: Illinois Village Taxes Arcade Out of Business

I'm tempted to say the tax was levied in hopes of wiping out the arcade and shutting up a few worried parents.

 

Still, chalk it up to political idiocy.

Re: Illinois Village Taxes Arcade Out of Business

Tragically, I can see that as a possible reason too.

To be persuasive we must be believable; to be believable we must be credible; credible we must be truthful. Edward R. Murrow

To be persuasive we must be believable; to be believable we must be credible; credible we must be truthful. Edward R. Murrow

Re: Illinois Village Taxes Arcade Out of Business

This one is easy:

Idiotic Village Taxes Arcade Out of Business

Fixed.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Illinois Village Taxes Arcade Out of Business

What? There's nothing wrong with taxes. Taxes are how the goverment gives us the things we need from them. Without taxes you wouldn't have roads and all those other things you take for granted.

(uh, sir, nobody can afford thier taxes, which means we have no money anyway)

Oh, well then just raise the taxes!

Re: Illinois Village Taxes Arcade Out of Business

Exactly. I don't mind paying taxes as long as they are fair and used for what they were designed for.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Illinois Village Taxes Arcade Out of Business

Ding Ding Ding! Correct!

We also would have accepted:

 Village Idiot Taxes Arcade Out of Business

 

 

Re: Illinois Village Taxes Arcade Out of Business

I thought of that one too after I posted the other one. glad to see someone else is on the same page.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Illinois Village Taxes Arcade Out of Business

IDIOTIC Illinois Village IDIOT Taxes Arcade Out of Business.

Like it, EZK?

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Re: Illinois Village Taxes Arcade Out of Business

A village official told the Courier News that officials set the fee high with the understanding that the game machine distribution companies pay. However, Gina Pearson indicated that such arrangements only occur with establishments which serve alcohol.

*faceplam*

Re: Illinois Village Taxes Arcade Out of Business

That really sucks. Those idiots running the town just didn't think that tax through did they. I hope this business gets through this okay.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Illinois Village Taxes Arcade Out of Business

They are politicians, what do you expect...  They already get income tax off of the damn things, why would they need a per machine tax?

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Re: Illinois Village Taxes Arcade Out of Business

A village official told the Courier News that officials set the fee high with the understanding that the game machine distribution companies pay. However, Gina Pearson indicated that such arrangements only occur with establishments which serve alcohol.

Brilliant work doing your research there village officials.

-Gray17

-Gray17

Re: Illinois Village Taxes Arcade Out of Business

The logical conclusion here is that Hampshire, Illinois wants Arcades to sell alcohol alongside other snacks. I'm sure that would go down well.

Re: Illinois Village Taxes Arcade Out of Business

They were probably thinking something along the lines of Dave & Buster's. Which is a very different scenario because they're an entertainment chain, not one independently owned business.

GameSnooper

Re: Illinois Village Taxes Arcade Out of Business

Yet another Arcade hears the death knell. This is getting very depressing, there's none at all left where I live now, the last one at the local cinema got moved out for a coffee shop..."sigh"

 
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