VGM taxes up 6.62 percent—$1 million in 2nd quarter
Pub Date: 3/1/2008
Video gaming machine tax collections grew by $996,214 in the second quarter of Fiscal Year (FY) 2008, Oct. 1-Dec. 31, 2007, an uptick of 6.62 percent.
Tax growth in the same quarter of the previous year was 7.11 percent.
Taxes collected amounted to $16.05 million compared to $15.05 million the same quarter the previous year.
Year-to-date taxes are $31.83 million compared to $30.04 million during the same six-month period the previous year, an increase of 5.96 percent, yet below the 7.35 percent growth of the same period the previous year.
The last six years have been characterized by stability in the regulatory and tax spheres which is reflected in the tax numbers. Tax collections and the regulatory environment had been quite volatile from 1994 to 2001 when the percentage gains fluctuated between 2.47 and 11.97 percent.
In the years 2002 through 2007, tax collections grew by 5.12, 5.56, 8.54, 6.59, 6.48 and 6.84 percent respectively, and now appear to be tracking for FY 2008 as well.
Gaming machine taxes for state and local governments have amounted to $686 million since 1990.
Rich Miller, executive director of the Gaming Industry Association of Montana (GIA) has explained, "The growth in taxes is another reflection of the generally positive state of the economy in Montana. That and the consistent tax and enforcement policies."
Montana Tavern Association Legal and Government Affairs Counsel Mark Staples has concurred with Miller. "Once again we see the positive result of a stable and predictable regulatory environment coupled with a tax rate that's fair rather than confiscatory," he said.
"That the tax rate is set an appropriate level has been proven again and again by the consistent reasonable growth of revenue that has been the hallmark of gaming since It's legalization in 1989."
In addition, manufacturers have been simultaneously improving the quality of game play and entertainment yield with enhanced graphics, audio, animation, ergonomics and innovative bonus game features.
As the Gambling Control Division focuses its energies on implementing the automated reporting system for the state's VGMs, some customary reports are lagging. Tax collections broken out by cities and counties, for example, have not been available since January, 2007.
Source: The Montana Tavern Times, March, 2008, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.