News from the Senate Majority
Alaska State Legislature

Wendy Lindskoog, Senate Majority Press Secretary
State Capitol
Juneau, AK 99801-1182
Phone: 907/465-4582
http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540

Bill Repeals Amusement Machine Tax

Reduces Size and Cost of Government

For Immediate Release: February 19, 1998 Contact: Kristy Tibbles, Assistant to Senator Drue Pearce, at (9070 465-4993.

Juneau – As part of their continuing efforts to downsize and reduce the cost of government, the Senate Finance Committee sponsored legislation that repeals the outdated Coin Operated Devices and Punchboards Tax Program. The Senate passed Senate Bill 240 Thursday by a vote of 16 to 2.

Senator Drue Pearce (R-Anchorage), Co-chair of the Senate Finance Committee, said repealing this tax on amusement machines including billiard tables, jukebox machines and pinball games will allow the State to lessen the burden on 250 Alaska businesses. It will also free up 500 hours of Department of Revenue (DOR) staff time for higher priority work. The amount of revenue lost from repealing the program, implemented in 1941, will be offset by money collected from increasing compliance of larger tax programs.

"Senate Bill 240 brings us one, admittedly small, incremental step closer to making government smaller and smarter," Pearce said. "This measure makes good sense. It reduces the paperwork and regulatory requirements placed on businesses and government."

Currently 250 businesses must annually file a return and pay the appropriate amount of tax. The current annual tax rate is $48 per device; the rate has remained unchanged since 1947. The program collects $90,000, shares $32,000 back to local governments and costs $15,000 to operate. Thus the net general fund revenue is $43,000. Department of Revenue officials have discussed the program repeal with several local government officials and the Alaska Municipal League. All concurred that they could not afford to administer the program locally for the small amount of revenue received.

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