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A skill games bill introduced by Pennsylvania Sen. Chris Gebhard (R-48), which calls for a 35% tax on the games, is receiving opposition from a fellow Republican senator.
Sen. Jarrett Coleman (R-16) penned a letter in the Delaware Valley Journal recently that argues the bill would hurt veterans in the state.
Coleman joins others, including small businesses across the state and skill games manufacturer Pace-O-Matic (POM) in opposition of Senate Bill 756.
Why Coleman opposes Gebhard’s bill
Gebhard’s bill places a 35% tax on skill games, which falls between the proposed tax rates by Gov. Josh Shapiro (52%) and Sen. Gene Yaw (16%). That’s essentially why Gebhard set the rate where he did.
Coleman wrote that SB 756 would put a strain on veterans’ organizations.
“Veteran organizations have said that if this devastating bill passes, they will have to lay off employees, reduce hours of operation, or stop important programming and services. Many have stated in no uncertain terms that it could mean the closing of their posts for good.
“Forcing the closure of our VFWs, American Legions, and other fraternal clubs would hurt not only our veterans but the entire community. Many of these clubs’ primary mission is to raise funds for charitable endeavors, including sponsoring local Little League teams, providing backpacks and school supplies to children in need, organizing toy drives for the holidays, and numerous other community-driven initiatives.”
A tax rate as high as 35% would also impact organizations’ ability to support former service members, Coleman said. He hasn’t put forward an alternative, but he wrote that lawmakers should “not tax and regulate skill games out of existence.”
Opponents seek lower tax rate
POM is in favor of Yaw’s bill and its lower tax rate.
Mike Barley, POM chief of public affairs, said revenue from skill games is essential to many small businesses in the state.
“Sen. Gebhard is not listening to business owners and fraternal groups suffering financially from an unstable economy and the skyrocketing cost of food and other goods.
“Local fire departments in the senator’s own district say skill game revenue is essential to their community protection efforts, and they can’t do enough fundraising to keep up with financial demands. They are grateful to have skill games to help with ever-increasing costs.”
More than a dozen small businesses have also spoke out against Gebhard’s bill.
Gebhard said he is open to lowering the rate. Last month, he said lawmakers “are basically in the first three innings of the game” when it comes to settling on a tax rate for skill games.
