Arcade-Machine Leases Are Tax Exempt, Georgia High Court Says

Revenue from arcade machine leases is exempt from use and sales tax because the relevant statute applies to all revenue generated from such products, the Georgia Supreme Court held Tuesday.

Funvestment Group LLC leased arcade machines—known as coin operated amusement machines—for customers to play at its venue, the opinion said. In reversing an appeals court finding against the company, the high court said the plain language of Georgia code O.C.G.A. §48-8-3, which provides the exemptions, applies to “gross revenues” from the leased machines.

“Because the plain language of OCGA § 48-8-3 (43) applies to revenues generated by COAMs, which ...