1997 Regular Session
To: Ways and Means
By: Representative Clark
House Bill 1730
AN ACT TO PROVIDE LICENSE FEES FOR THE MANUFACTURE, SALE, DISTRIBUTION, OWNERSHIP AND OPERATION OF ELECTRONIC VIDEO COIN MACHINES; TO TAX THE MANUFACTURE, SALE, DISTRIBUTION, OWNERSHIP AND OPERATION OF ELECTRONIC VIDEO COIN MACHINES; TO LEVY A STATE TAX IN THE AMOUNT OF 12% OF THE NET PROCEEDS DERIVED FROM THE OPERATION OF ELECTRONIC VIDEO COIN MACHINES; TO PROVIDE THAT THE MUNICIPALITY AND COUNTY IN WHICH AN ELECTRONIC VIDEO COIN MACHINE IS LOCATED SHALL SHARE IN THE DISTRIBUTION OF THE NET PROCEEDS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. As used in this act, the following definitions shall have the meanings ascribed herein unless the context clearly requires otherwise:
(a) "Commission" means the Mississippi Gaming Commission.
(b) "Distributor" means an individual, partnership or corporation licensed under this act to buy, sell, lease, repair or distribute electronic video coin machines. The term excludes machine owners and manufacturers.
(c) "Gross proceeds" means the total amount of money placed into electronic video coin machines.
(d) "Incentive" means a consideration, including a premium or bonus in cash or advance commission on merchandise, offered from a machine owner to a licensee in order to solicit its business.
(e) "Licensee" means an individual, partnership or corporation that has been issued a license by the Mississippi Gaming Commission for the placement and operation of electronic video coin machines on the premises of the individual, partnership or corporation.
(f) "Licensed premises" means any restaurant, bar, lounge, tavern, motel, hotel, club, fraternal order or any other premises that has a license for the sale of alcoholic beverages, light wine or beer for on-premises consumption.
(g) "Machine owner" means an individual, partnership or corporation which is licensed under this act and which owns, and operates, leases, services and maintains electronic video coin machines for placement in licensed premises.
(h) "Manufacturer" means an individual, partnership or corporation which is licensed under this act and which manufactures or assembles and programs electronic video coin machines.
(i) "Net proceeds" means gross proceeds after awards have been paid.
(j) "Person" means a corporation, partnership and association, as well as a natural person.
(k) "Electronic video coin machine" means any electronic video game machine authorized pursuant to the provisions of this act that, upon insertion of cash, is available to play or simulate the play of a card game utilizing a video display and microprocessors in which, by the skill of the player or by chance, or both, the player may receive free games or credits that can be redeemed for cash. The term does not include a machine that directly dispenses coins, cash, tokens or anything of value or any slot amusement machine as defined in Section 27-27-3. All machines must contain electronic information verifying transmitting components as required by the Mississippi Gaming Commission.
SECTION 2. The commission shall collect the prescribed fees for the following licenses:
(a) A manufacturer's license.......Annual fee of Fifteen Thousand Dollars ($15,000.00).
(b) A distributor's license........Annual fee of Five Thousand Dollars ($5,000.00).
(c) A machine owner's license......Annual fee of One Hundred Fifty Dollars ($150.00) per machine for the first fifty (50) individual coin machine licenses. For each additional electronic video coin machine, the annual fee shall be Fifty Dollars ($50.00) per machine. Every electronic video coin machine in use in this state must have a current license displayed on the machine. Every electronic video coin machine licensed under this act must be manufactured by an individual, partnership or corporation licensed under item (a) of this section. This type of license will allow a machine owner to sell used electronic video coin machines that the owner purchased new and operated for at least two (2) years.
(d) A licensee's license...........Annual fee of One Hundred Fifty Dollars ($150.00) for each machine.
(e) The commission shall refund all licensee fees if an application is rejected; however, the commission may establish an application fee not to exceed Two Hundred Fifty Dollars ($250.00) per application.
SECTION 3. (1) Net proceeds shall be collected by the machine owner for each licensed electronic video coin machine.
(2) (a) A tax at the rate of twelve percent (12%) of the net proceeds derived from the operation of such machines shall be collected by the State Tax Commission to be deposited in the State General Fund.
(b) A tax at the rate of eight percent (8%) of the net proceeds derived from the operation of such machines shall be collected by the State Tax Commission and distributed as follows: (i) Four percent (4%) to the incorporated municipality where the machine is located; and four percent (4%) to the county where the machine is located; or
(ii) In the event that the machine is not located within an incorporated municipality, eight percent (8%) to the county where the machine is located.
(3) The commission is authorized to establish a procedure for auditing the electronic video coin machines. The procedure will include reports prepared by the machine owners and electronic auditing at a central location designated by the commission. The timing and contents of the reports shall be established by the commission. The commission shall have the authority to contract with an independent auditing firm to establish and operate all or some of the auditing requirements as established by the commission.
SECTION 4. Electronic video coin machines licensed and permitted pursuant to this act are exempt from taxes, fees, and licensing restrictions imposed by any governmental entity, except as provided for in this act.
SECTION 5. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the slot amusement machine tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the slot amusement machine tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.
SECTION 6. This act shall take effect and be in force from and after July 1, 1997.