State of Oregon forcing retailers to pay taxes on video lottery machines that are shut down

Apr 30, 2020, 8:20 am (9 comments)

Oregon Lottery

Hundreds of bars and restaurants already struggling to survive are now facing another financial setback. The Oregon Lottery is collecting taxes on each video lottery machine, even though the machines are shut down.

"I was absolutely floored. I could not believe it," said Gloria Huguley, owner of Newport Steak and Seafood.

Huguley said she owes $2,082 in taxes for the six video lottery machines in her restaurant, which remains closed due to stay-at-home restrictions. The family-run restaurant, with 18 employees, is struggling to survive.

"If I were to shut down it would be very, very emotional and very hard because I love my employees," said Huguley.

The tax bill is especially frustrating for Huguley because the machines aren't working. The lottery shut them down on March 17.

"We have no authority to waive it," said Matt Shelby, spokesperson for the Oregon Lottery. Shelby said the lottery collects the annual amusement device tax on behalf of the Oregon Department of Revenue.

Unlike personal income taxes, which have been pushed back, state revenue wants its tax money from video lottery machines right now. Roughly 550 bars and restaurants have been asked to pay.

"Taxes were incurred before the terminals were turned off and the retailers were compensated for the earnings, which triggered the additional tax," Rich Hoover, spokesperson for the Department of Revenue wrote in an email to KGW.

Hoover said the state agency is willing to work with retailers to come up with a payment plan.

KGW

Comments

Unlucky-Kenny's avatarUnlucky-Kenny

Oh good - not like small businesses who employ people need a break or anything around this time -

"The tax bill is especially frustrating for Huguley because the machines aren't working. The lottery shut them down on March 17."

Cussing Face

Hey we shut down your machines, were is our money by the way?

Talk about bad PR for the state -

PHIL85

I don't get it. You'd think any taxes would be on each wager placed at the machine. If the machine is not operating no sales are made. So what is the tax for. Taking up floor space?

TheMeatman2005's avatarTheMeatman2005

Quote: Originally posted by PHIL85 on Apr 30, 2020

I don't get it. You'd think any taxes would be on each wager placed at the machine. If the machine is not operating no sales are made. So what is the tax for. Taking up floor space?

The article stated: "Taxes were incurred before the terminals were turned off and the retailers were compensated for the earnings, which triggered the additional tax," Rich Hoover, spokesperson for the Department of Revenue wrote in an email to KGW."

Bleudog101

Work out the tax situation and tell them to come get all of these machines.   why did they get compensated if they turn around and tax the Mom and Pop operations?

Big Joey

I had ancestry restaurants in my family, when struggling, you introduce a new menu item that would be interesting to patrons, and a new dessert item, this brings in additional revenue to the restaurant in addition to the normal menu items. Sometimes limited time only, or permanent.

noise-gate

The Oregonian retailers trusted the State Lottery and got.....screwed over!

 

 

     nuclear explosion running GIF

noise-gate

Quote: Originally posted by noise-gate on Apr 30, 2020

The Oregonian retailers trusted the State Lottery and got.....screwed over!

 

 

     nuclear explosion running GIF

Interpretation:

All seems harmless, the gal about to pour a soda * State Lottery installing equipment.

Then all **** breaks loose- The vendors are thrown under the bus.

Finally like the Phoenix out of the ashes, some retailers will rise.See Ya!

Think's avatarThink

That's OK, the state will be first in line to collect during the bankruptcies.

Stat$talker's avatarStat$talker

That's horrible of the State's Revenue Dept!...

The BEAST never curbs its appetite, and must be fed.. regardless of a seemingly World-Wide disaster..!!

"Government gone wild"..!!

End of comments
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