OK Set to Raise Licensing Fees for Arcade Machines

June 7, 2010 -

Facing a budget shortfall of $1.2 billion, the state of Oklahoma is looking to zap vending machine and arcade operators with a fee increase of about 300 percent.

Effective July 1, the cost of a license for such machines will rise from $50 to nearly $150, which will make life more difficult for arcade operators like Mike Sefcovick, who operates Cactus Jack’s in Oklahoma City.

Sefcovick pays about $17,000 a year currently to license his 350 machines, a number that will skyrocket to around $52,000 (approximately $145 per machine) following the implementation of the increase.

Sefcovick, speaking to News9, said about the increase, “It’s going to hurt us bad.”

Governor Brad Henry's spokesperson Paul Sund added, “The question was simple, do you raise fees or do you lay off teachers. Do you raise fees or furlough troopers; we thought it made more sense to raise fees.”


Thanks E. Zachary Knight!


Comments

Re: OK Set to Raise Licensing Fees for Arcade Machines

Why the hell should arcades pay the states licensing fees for each machine in the first place?

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---------------------------------------------------- Debates are like merry go rounds. Two people take their positions then they go through the same points over and over and over again. Then when it's over they have the same positions they started in.

Re: OK Set to Raise Licensing Fees for Arcade Machines

They pay the licensing fee in place of charging sales tax on the revenue generated by the machine.

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

Re: OK Set to Raise Licensing Fees for Arcade Machines

Oh ok, I thought this was in addition to sales tax.

----------------------------------------------------

Debates are like merry go rounds. Two people take their positions then they go through the same points over and over and over again. Then when it's over they have the same positions they started in.

---------------------------------------------------- Debates are like merry go rounds. Two people take their positions then they go through the same points over and over and over again. Then when it's over they have the same positions they started in.

Re: OK Set to Raise Licensing Fees for Arcade Machines

In the case of coin-operated vending machines, it is very much like a double sales tax because sales tax was already paid on the products with which the machines are stocked when those products were purchased at wholesale. A hand-to-hand vendor would get to collect sales tax from the purchaser when the retail sale is made. The owners of coin-operated vending machines don't.

Re: OK Set to Raise Licensing Fees for Arcade Machines

Sounds like they'd be better off taking 15% of the profit...


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Re: OK Set to Raise Licensing Fees for Arcade Machines

If you watch the video, the owner of Cactus Jack's says he will have to downsize by 2/3 to make up the cost. That means that he will be laying off workers and probably selling of machines just to stay affloat.

With fewer people working there and fewer machines, he won't be able to provide the same level of service and possibly fewer people will show up to play the games. Talk about a downward spiral.

I really feel for the arcade owners in Oklahoma. I wish there was more I could do.

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

Re: OK Set to Raise Licensing Fees for Arcade Machines

As other have stated, if you put a tax on something so high to drive it out of business, you won't make any money on it.

Honestly, I feel like this is sort of the intended outcome.  Perhaps Oklahoma politicians don't like arcades, so they put down a tax to help "rebalance the economy" that just so happens to be so ridiculous that it'd put them out of business.

Re: OK Set to Raise Licensing Fees for Arcade Machines

I don't think that it was really a plan to put arcade owners out of business. I think it was a plan to raise revenue from an area where they would get the least amount of voter backlash.

I still hate the fee raise, but I just don't see it as a direct attack on video games.

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

Re: OK Set to Raise Licensing Fees for Arcade Machines

 I see it as somewhere in between.

This smells like a 'sin tax', not designed to actually wipe out the activity, but does serve as social engineering to discourage people from it or at minimal make sure that people who do 'unapproved' activity are at a disadvantage when compared to people who follow the 'advice' of the social leaders.

This is one of the core tactics of religious groups that has been built up over the last few decades.  Rather then making their own advice better, they work to stack things so that anyone who follows an alternative is in the worst possition possible.   The 'abstience only' programs are probably the strongest example... follow their advice and things go well, do not follow their advice and they make sure you suffer as much as possible via lack of options or knowledge... which makes them look all the stronger since they can point and say 'see! we told you to do as we say!'

Re: OK Set to Raise Licensing Fees for Arcade Machines

Again, this is a licensing fee for ALL coin-operated machines. So owners of soda and snack vending machines are hit with this as well. Other coin-operated machines are as well. Not just arcade owners.

What all in covered by the term "coin-operated" is not clear to me at this moment, but it is something that I am looking into.

Not sure how religion plays into this discussion.

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

Re: OK Set to Raise Licensing Fees for Arcade Machines

I don't really see it as an attack, per se, but I do find it odd.  The nature of this tax raise will probably put every arcade left in the state of Oklahoma out of business.

Re: OK Set to Raise Licensing Fees for Arcade Machines

EErrrr........... right so putting poeple out of busniess is a way to make money?

 

Start installing traffic cams everywhere that would be a better option.

Redbankastan(Red bank TN) has pulled in 750K via thier cams and they are a tiny city.


I have a dream, break the chains of copy right oppression! http://zippydsmlee.wordpress.com/2010/05/21/cigital-disobedience/


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Let's renegotiate them.

---

http://zippydsm.deviantart.com/

Re: OK Set to Raise Licensing Fees for Arcade Machines

OR, and this may sound crazy, you can stop overspending.  Call me crazy, but I bet we can easily find 1.2 billion dollars to cut from your budget.

Re: OK Set to Raise Licensing Fees for Arcade Machines

Alternatively, they can probably easily pull in 1.2B if they remove some of those pesky tax exemptions from well connected groups.  Imagine how much cash they would pull in if, say, the catholic church's properties were taxed like any other business..... 

Re: OK Set to Raise Licensing Fees for Arcade Machines

Or maybe they could tax some of their tax-exempt politically oriented 'charities'.

Or, maybe they could learn how to not spend in retarded manners.

Re: OK Set to Raise Licensing Fees for Arcade Machines

Considering religious institutions are fedreally exempt from paying any taxes, I don't think they would be able to.

But there are certainly many ways they could have closed the gap by closing tax loopholes and incentives. We could have scaled back or removed completely the tax breaks for oil companies for instance. With the recent BP fiasco, that could have gone over really well.

But of course the state only raises fees and taxes for people that can't afford to have a team of 100 full time lobbyists.

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

Re: OK Set to Raise Licensing Fees for Arcade Machines

Yeah its always a good ideal to risk losing job with insane rates to remove risk of losing another job.

Really, this is a stupid move by the state.

http://www.magicinkgaming.com/

Re: OK Set to Raise Licensing Fees for Arcade Machines

"The state estimates they will be able to bring in an extra 9 million dollars."

These idiots do know that 300% of zero is still zero, right?

Re: OK Set to Raise Licensing Fees for Arcade Machines

if you raise fee's and drive them out of business you end up laying off teachers anyway.

Re: OK Set to Raise Licensing Fees for Arcade Machines

And are left with a worse budget than before the increase in fees.

 
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