Automatic Age
Issue: 1941 October - Page 8
cial, Wm. Rabkin, president of International
Mutoscope Reel Co., sent this important announce
ment, dated October 9, 1941:
“ We have just been advised by the Internal
Revenue Department that there will be No ‘USE’
TAX on general arcade equipment such as—
“ Athletic equipment, fortune-telling machines,
Mutoscope Reel Picture Machines, baseball games,
shooting and target games, Photomatic, Sky
Fighter, Ace Bomber, Drive Mobile, Post Card
Venders, Punch-A-Bag, and many many more of
the usual arcade machines, and all bona fide vend
ing machines in which are not incorporated gam
ing features.”
“ REFERENCE TELEGRAM SEVENTH IF
ONLY ENTERTAINMENT IS PHONOGRAPH
OR COIN OPERATED MUSIC MACHINE AND
SPACE WHERE PATRONS MAY DANCE
FIVE PERCENT CABARET TAX DOES NOT
APPLY.— D. S. BLISS, DEPUTY COMMIS
SIONER.”
"USE" TAX DOES NOT APPLY TO PHONOGRAPHS
Notwithstanding the problems imposed by this
emergency measure— the opportunity is at hand
whereby operators can, through their cooperation
and application of sound business procedure, turn
the call for patriotic duty into a set of guide posts
for the stabilization of their business.
The “ use” tax levied on each location on coin
operated amusement and gaming devices in Sec
tion 555 of the new Federal Revenue Law DOES
NOT apply to coin-operated phonographs. They
are subject only to an excise tax of 10 percent of
the manufacturer’s selling price.
Because of some uncertainty and confusion
which seems to exist— Automatic Phonograph
Manufacturers Association requested a definite
answer regarding the coin machine tax from
Captain D. S. Bliss, Deputy Commissioner of In
ternal Revenue at Washington. The following
wire, dated October 7, 1941, was received :
“ REFERENCE TELEGRAM SIXTH TAX
IMPOSED SECTION FIVE FIVE FIVE REV
ENUE ACT FORTY ONE DOES NOT APPLY
TO COIN OPERATED PHONOGRAPHS.— D. S.
BLISS, DEPUTY COMMISSIONER.”
CABARET TAX DOES NOT APPLY TO PHONOGRAPHS
SETTING UP TAX MACHINERY
What is the situation of the pinball amusement
machine and gaming machine operator? How will
he operate under the tax provisions of the new
Federal Defense Revenue Act? These are the
questions of the day.
Let there be no misunderstanding that accept
ance of, and cooperation with, the letter and spirit
of the law of the land— is a patriotic duty. It is up
to each and every individual operator to give his
support to the end that the law will function
smoothly.
The best symbol of unity today is the trade as
sociation. The operator’s greatest chance of coping
with the new situation is strengthened from mem
bership in his local association. These associa
tions, all over the country, are striving to clarify
the new tax bill so each operator will know what
his obligations are under the bill.
The 5% cabaret tax levied in Section 542 of the
1941 Revenue Act will not apply to locations which
An excellent example of how the local associa
tions are helping operators to comply with the
bill, is the work being done by the Amusement
h a v e n o e n t e r t a in m e n t e x c e p t c o in -o p e r a t e d p h o n o
g r a p h s a n d s p a c e w h e r e p a t r o n s m a y d a n ce . A u t o
M e r c h a n t s ’ A s s o c ia t io n , In c., o f S a n F r a n c is c o .
O n p a g e 36 o f th is is s u e , m a n a g in g d ir e c t o r S id
matic Phonograph Manufacturers Association re
quested a statement and received the following
wired reply:
ing with the local Internal Revenue Division of
Northern California.
M a c k in , g iv e s a c o m p r e h e n s iv e r e p o r t on c o o p e r a t
POPULAR SPOT FEATURES REMOTE C O N TR O L UNITS
Peter & Pauline’s Tavern, lo
cated at the junction of High
ways 50 and 10, Johnson Coun
ty, Kansas has recently installed
nine Model 125 Wurlitzer wall
boxes featuring the single entry
5, 10, 25c coin chute.
The management reports that
the installation of these boxes
on walls and bar resulted in an
immediate and substantial in-
crease in phonograph play.
Operated with a Model 850
AUTOMATIC AGE
8
© International Arcade Museum
by the Music Service Company
of Kansas City, Mo.
October, 1941
http://www.arcade-museum.com/
Mutoscope Reel Co., sent this important announce
ment, dated October 9, 1941:
“ We have just been advised by the Internal
Revenue Department that there will be No ‘USE’
TAX on general arcade equipment such as—
“ Athletic equipment, fortune-telling machines,
Mutoscope Reel Picture Machines, baseball games,
shooting and target games, Photomatic, Sky
Fighter, Ace Bomber, Drive Mobile, Post Card
Venders, Punch-A-Bag, and many many more of
the usual arcade machines, and all bona fide vend
ing machines in which are not incorporated gam
ing features.”
“ REFERENCE TELEGRAM SEVENTH IF
ONLY ENTERTAINMENT IS PHONOGRAPH
OR COIN OPERATED MUSIC MACHINE AND
SPACE WHERE PATRONS MAY DANCE
FIVE PERCENT CABARET TAX DOES NOT
APPLY.— D. S. BLISS, DEPUTY COMMIS
SIONER.”
"USE" TAX DOES NOT APPLY TO PHONOGRAPHS
Notwithstanding the problems imposed by this
emergency measure— the opportunity is at hand
whereby operators can, through their cooperation
and application of sound business procedure, turn
the call for patriotic duty into a set of guide posts
for the stabilization of their business.
The “ use” tax levied on each location on coin
operated amusement and gaming devices in Sec
tion 555 of the new Federal Revenue Law DOES
NOT apply to coin-operated phonographs. They
are subject only to an excise tax of 10 percent of
the manufacturer’s selling price.
Because of some uncertainty and confusion
which seems to exist— Automatic Phonograph
Manufacturers Association requested a definite
answer regarding the coin machine tax from
Captain D. S. Bliss, Deputy Commissioner of In
ternal Revenue at Washington. The following
wire, dated October 7, 1941, was received :
“ REFERENCE TELEGRAM SIXTH TAX
IMPOSED SECTION FIVE FIVE FIVE REV
ENUE ACT FORTY ONE DOES NOT APPLY
TO COIN OPERATED PHONOGRAPHS.— D. S.
BLISS, DEPUTY COMMISSIONER.”
CABARET TAX DOES NOT APPLY TO PHONOGRAPHS
SETTING UP TAX MACHINERY
What is the situation of the pinball amusement
machine and gaming machine operator? How will
he operate under the tax provisions of the new
Federal Defense Revenue Act? These are the
questions of the day.
Let there be no misunderstanding that accept
ance of, and cooperation with, the letter and spirit
of the law of the land— is a patriotic duty. It is up
to each and every individual operator to give his
support to the end that the law will function
smoothly.
The best symbol of unity today is the trade as
sociation. The operator’s greatest chance of coping
with the new situation is strengthened from mem
bership in his local association. These associa
tions, all over the country, are striving to clarify
the new tax bill so each operator will know what
his obligations are under the bill.
The 5% cabaret tax levied in Section 542 of the
1941 Revenue Act will not apply to locations which
An excellent example of how the local associa
tions are helping operators to comply with the
bill, is the work being done by the Amusement
h a v e n o e n t e r t a in m e n t e x c e p t c o in -o p e r a t e d p h o n o
g r a p h s a n d s p a c e w h e r e p a t r o n s m a y d a n ce . A u t o
M e r c h a n t s ’ A s s o c ia t io n , In c., o f S a n F r a n c is c o .
O n p a g e 36 o f th is is s u e , m a n a g in g d ir e c t o r S id
matic Phonograph Manufacturers Association re
quested a statement and received the following
wired reply:
ing with the local Internal Revenue Division of
Northern California.
M a c k in , g iv e s a c o m p r e h e n s iv e r e p o r t on c o o p e r a t
POPULAR SPOT FEATURES REMOTE C O N TR O L UNITS
Peter & Pauline’s Tavern, lo
cated at the junction of High
ways 50 and 10, Johnson Coun
ty, Kansas has recently installed
nine Model 125 Wurlitzer wall
boxes featuring the single entry
5, 10, 25c coin chute.
The management reports that
the installation of these boxes
on walls and bar resulted in an
immediate and substantial in-
crease in phonograph play.
Operated with a Model 850
AUTOMATIC AGE
8
© International Arcade Museum
by the Music Service Company
of Kansas City, Mo.
October, 1941
http://www.arcade-museum.com/
Future scanning projects are planned by the International Arcade Museum Library (IAML).