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Senate debates sales tax on coin-operated devices; industry warns margins too thin to absorb levy
Summary
Senate Bill 211, proposing sales tax on coin-operated amusement devices, laundromats and car washes, drew extended debate over regressivity and machine technical limits; industry representative Traig Johnson said operators run on 4–7% margins and cannot practically pass a 6.25% tax to consumers, and senators adopted amendments and allowed a short industry hearing.
The Utah Senate took up Senate Bill 211 on Feb. 15, a measure that would lift existing exemptions and impose sales tax on a set of coin-operated devices, including amusement (video) machines, coin-operated laundromats and coin-operated car washes.
Sponsor Senator Lyle Hilliard told colleagues the bill has three discrete parts: a new tax on coin-operated amusement devices, and removal of current exemptions for coin-operated laundromats and car washes. He argued the measure promotes fairness with other taxed vending operations and said the Tax Review Committee had reviewed elements of the proposal.
Hilliard moved to reinstate language removing the exemption for coin-operated laundromats while accepting a friendly amendment from a colleague that would exempt coin-operated machines inside apartment complexes not open to the general public. That motion drew sustained opposition on equity grounds:…
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