Local Bar Owners say Video Gambling Tax Extra Burden
By: Eugene Daniel
Updated: January 24, 2013
PEORIA - A Peoria bar owner says a new video gaming license is an extra
burden on already cash strapped businesses.
Mary Motteler owns The Recovery
Room in Peoria.
She turned her machines on last week
just days before the city said owners must pay up to $450 for a video gaming
license fee. Motteler will have to pay $400.
Motteler says she hasn't seen a profit from her machines yet, and she
hoped the city would wait to see how much money other businesses make.
She says times are
tough for small businesses, which are already feeling a heavy burden without the
fee.
"Between the state
of Illinois, the health department and the city, I will have spent $2,590 on
those license fees alone," she said.
Originally, the city
proposed a flat rate fee of $500 for businesses that operated video gambling
machines. Tuesday, city leaders agreed on an ordinance that will charge $250
for the first machine and $50 per additional machine. The state limit is five
machines per establishment, which means $450 would be the highest fee.
The city says fees in some other cities are much more expensive, but many
range from $100 to $500 initial fees.
"Aurora, they
charge a $600 arcade fee for actual place and additional $100 license fee for
each machine," city attorney Sonni Choi Williams.
But Motteler argues
most other cities do not have to pay a monthly HRA (Hotel, Restaurant and
Amusement) tax.
According to the city, the ordinance provides local control and regulation. The fee will also pay for staff labor costs.
"I mean, I understand the place that the city is in too, but these
little mom and pop bars, they're hurting right now," she said.
The ordinance takes effect in February. The city will re-evaluate the fee
next year.
