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Recent Tax Raise on Bingo Machines Under Comptroller Review

June 22nd, 2009

The owners of electronic bingo machines in Chesapeake Beach Town are dismayed because the council recently increased the amusement and admissions tax on the bingo machines in Chesapeake Beach Town’s 3 mega commercial enterprises from 0.50 percent to 0.75 percent. However, there is hope that the raise might not be approved. The Office of the Comptroller is yet to review the matter and approve the increase in taxes. Joseph Shapiro, the comptroller’s spokesman, said that the Office of the Comptroller has 60 days to review the increase in taxes and state whether it is legal.

All the members of the council are not for the increase. The Chesapeake Beach Town Council approved of the tax increase because it received a vote of 4 against 2 within the council. The assistant attorney general of Maryland Kathryn M. Rowe warned the council that the raise could not be considered legal. The members of the council who voted against the increase were Bob Carpenter and Stewart B. Cumbo.

Even the mayor of the town, Bruce A. Wahl, does not approve of the increase, a fact that is revealed in his letter to Peter Franchot, the comptroller. Wahl stated, “I trust that the Office of the Comptroller will take appropriate action to collect and remit to the town all taxes lawfully imposed upon the proceeds of electronic bingo machines within the town.” Besides, Wahl assured that there was “no chance of winning an increase” at a recent news conference.

On the other hand, the members of the council who approved of the tax increase said that this was a great way to raise the town’s revenue by $250,000 for the next fiscal year. Patrick Mahoney, a member who voted for the raise said that it would generate the funds that the town badly requires.

Reaction of Bingo Machine Owners

Trader’s Seafood, Steak, and Ale Restaurant, located on Chesapeake Beach, has about 70 electronic bingo machines. The co-owner of this establishment Gary Luckett said that he was sure the comptroller wouldn’t approve the raise. Luckett said, “I find it kind of hard to believe that our local council members would be willing to put forth so much effort that could potentially hurt our business.”

Recently, the state raised the amusement tax on electronic bingo machine, a move which led to the town council’s recent increase on admission and amusement tax on the town’s bingo machines.

Recent Tax Raise on Bingo Machines Under Comptroller Review

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