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Arcade Game Leases Subject to Georgia Sales Tax, Court Rules

June 24, 2022, 7:48 PM

Leasing coin-operated amusements isn’t exempt from sales tax under a Georgia law that provides a tax break on gross revenues generated from such machines, a state appeals court ruled.

Funvestment Group, which operates an indoor miniature vehicle track and arcade, challenged the state’s imposition of sales and use taxes on the amount it paid to lease the machines from Tiny Towne International.

The Georgia Court of Appeals rejected Funvestment’s argument expanding the meaning of “gross revenue” in the state tax code. “The statutory provision at issue here, OCGA § 48-8-3 (43), contains no clear and unambiguous expression ...