Georgia Justices Pick Apart Sales Tax Exemption for Arcade Games

The Georgia Supreme Court puzzled over how to understand a sales tax exemption for arcade game revenue at oral arguments Tuesday.

A state appeals court ruled last June that Funvestment Group, which operates an arcade, must pay sales and use taxes on the amount it paid to lease arcade machines from Tiny Towne International. The state tax code exempts “gross revenues generated from” coin-operated amusements offered to the public.

Justice Sarah Hawkins Warren seemed skeptical of Funvestment’s argument that the lease payments are exempt in addition to money players put into the machines. “I least can understand where the Court ...