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FROM THE EDITOR As the the turnip turnip turns turns As N N ow maybe you don't think of the coin machine ow maybe you don't think of the coin machine industry as a turnip, but it's evident that some industry as bodies a turnip, evident that some legislative arebut stillit's trying to squeeze that legislative bodies are still trying to squeeze that proverbial blood out of it. They just don't believe proverbial blood out of"You it. They the old expression, can'tjust getdon't bloodbelieve from a the old expression, "You can't get blood from a turnip." Why should they, though, they've been turnip." Why they, though, they've been trying to do itshould for years! years! for it do to trying Why is the coin machine industry such an irWhy is the coin industry such an irresistible target formachine government agencies when resistible target for government agencies when they are searching for ways to raise money? theyIare searching forwe've ways to raiseourselves money? that know, I know, asked I know, I know, we've asked ourselves that question so many times hoping to find some anquestion so many times hoping to find some swer that we are almost ready to admit anthat swer that almostEvery readytime to some admit politithat there's nowe easyare answer. there's no easy answer. Every time some political fracas begets an urgent need for funds, sudcal fracas begets an urgent needindustry for funds, suddenly our tops hit denly our industry tops lists. How unfair could hit this lists. How unfair could this be? Of course, we're looking be? Of course, we're looking at it through different eyes, at it through different eyes, but certainly not rose-colbut not rose-coloredcertainly glasses. What we see is we see is What glasses. ored a fight for survival. What What survival. for see fight we awould if we stepped would we see if we stepped into their shoes? I still find it into their shoes? I still find it impossible to believe I could to believe I could impossible ever understand anyone ever understand anyone who gives our industry so who gives our industry so little respect and so little little respect and so little credit. credit. ValerieCognevich Cognevich Valerie Editor Editor Another instance of what Another instance of what I'm talking about is happenI'm talking about is happening yet again in yet another ing yet againisina proposal yet another city. There that that proposal a is There city. will require operators to pay will require to pay taxes on theoperators gross take from taxes on the gross take from amusement machines. Obamusement machines. Obviously, the city officials the city officials viously, have taken a look at these small businesses and have taken a look at these small businesses and decided that there were indeed a few drops of decided that there were indeed a few drops of blood left to squeeze out. They seem blissfully blood left blissfully ofsqueeze the fact out. thatThey thereseem was never any unaware to unaware of the fact that there was never any there to begin with. thereAlthough to begin with. there must be a reasonable arguAlthough there must be a reasonable argument (well, probably not reasonable but at least ment (well, probably notnewest reasonable butswell at least an argument) that this tax will the tax will swell the newest this that argument) an city coffers, I'm having a very difficult time figurcity I'm having very difficult time ingcoffers, out where all this aEXTRA money willfigurcome ing out where all this EXTRA money will come from. from. Let's take a look: the operator-small busiLet's take a look: the operator-small businessman-invests a hefty chunk of his money nessman-invests a hefty He chunk his vehicles, money into buying new games. also of buys into buying new games. He also buys vehicles, and employs route collectors, technicians, office and employs route collectors, technicians, office workers, bookkeepers, drivers, etc. Remember workers, bookkeepers, drivers, etc. Remember that all of the salaries, money to buy equipment, that all of the salaries, money to buy equipment, trucks, gas, repairs, and everything else he must trucks, repairs,from andhis everything else he mustof spend gas, on comes share (HIS SHARE) on comes from his share (HIS SHARE) of spend the gross receipts. The operator does not have the grosstoreceipts. The operator notover haveto access or the use of the moneydoes turned access to or the use of the money turned over to the location. It's the location's money-period. the location. It'sportion the location's The other of the money-period. gross receipts goes The other portion of the gross receipts goes PLAY METER PLAY METER 88 to the location. He uses his share for whatever to the location. He uses his share for whatever expenses he may have, including hiring new emexpenses have,responsible including hiring new emis then for paying the ployees. he Hemay ployees. He ison then for paying the City ofproper taxes thatresponsible income he receives. proper on thatthat income he receives. Citydoes officials taxes must realize the liquor company ficials must realize that the liquor company does not pay taxes on the profits the locations make not payselling taxesbooze. on the profits the locations make from fromSoselling booze. here's the scenario: an operator takes a So here's the scenario: an operator takes a share of the money collected in a machine and share of the money collected in a machine and pays taxes on it. The location owner takes his pays taxes on it. The location owner takes his share of the collection and pays taxes on it. Now share of the collection and pays taxes on it. Now may I ask the obvious question? Where is the exmay I ask the going obvious question? Where themonextra revenue to come from? All ofisthe tra revenue going to come from? All of the money is already being taxed. The tax is coming from eythe is already being taxed. The tax is coming from person who, in effect, owns the money. It the person who, in effect, owns the money. It seems pretty fair the way it is. seems pretty fair the way it is. But wait, could there be something really sinBut wait, could there be something really sinister afoot here? Could it be that the city officials ister afoot here? Could it be that the city officials have devised a way to tax that money twice? have devised a way to tax that money twice? They could make the operator pay taxes on the They could make the operator pay taxes on the gross collection and then have the location pay gross andOr then have location taxescollection on his share. wait, we the could take it pay a lit- taxes on his share. Or wait, we could take it a little further! How about make the location owner tle further! How about make the location owner pay taxes on the gross receipts and then have the taxes on the gross receipts and then have the pay operator pay taxes on the same gross receipts! operator pay taxes on the same gross receipts! Will pathetic attempts to bleed the industry nevWill pathetic attempts to bleed the industry never cease? The answer is, of course, never! er cease? The answer is, of course, never! I can't emphasize how unfair it is to treat coin I can't emphasize how unfair it is to treat coin machine operators like they are treated too ofmachine operators like they are treated too often. They are honest, hard-working (really hardten. They are honest, hard-working (really hardworking) independent business people creating working) independent business peopletaxes, creating jobs in their communities, paying and jobs in their communities, paying taxes, and adding nuch-needed fun to that community. I adding nuch-needed fun to that community. I am not exaggerating when I say that taxing op- amerators not exaggerating I say op-of beyond theirwhen means willthat sealtaxing the fate erators beyond their means will seal the fate of those already struggling to make ends meet. No those to make ends meet. No doubtalready they'll struggling be out of business. The domino efdoubt they'll be out of business. The domino effect certainly will apply as employees find them- fect certainly will apply as employees find themselves out of a job, their buying power ceases, selves out of a job, their buying power ceases, and the city must pay unemployment compensaand the city must pay unemployment compensation to those employees now out of a job thanks tion to those employees now out of a job thanks to unfair taxation. Now, where is the advantage to unfair taxation. Now, where is the advantage of putting people out of business? people out of business? of putting You know what is absolutely outrageous? You know what is absolutely outrageous? The same city that is trying to impose a gross re- The same city that is trying to impose a gross receipts tax on operators did not even know that ceipts tax on operators did not even know that operators were required to buy city licenses to licenses to to buy city were required operators operate games! It was a different department, it operate games! Ittowas a different department, it was explained operators when they argued was operators when theythan argued thatexplained they weretoalready putting more their that they were already putting more than their fair share into city coffers. fair share into city coffers. I was a little outraged when I first heard of this I was a little outraged when I first heard of this latest attack on the industry. Of course, operators latest attack on the industry. Of course, operators in the city are even more angry and frustrated. in the city are even more angry and frustrated. How hard could it be to understand that operaHow hard could it be to understand that operators are already pulling their weight? Or is it that tors are already pulling their weight? Or is it that these people don't really want to know? .&. these people don't really want to know? APRIL1996 1996 APRIL