Pittsburgh councilman proposes tax on "skill games" to boost city revenue

A Pittsburgh councilman is tossing around the idea of taxing "skill games." 

Councilman Anthony Coghill feels it could bring millions into the city's coffers. He said with the city budget in the shape it's in, they need to look at revenue, and that's why this is on the table.

This comes after a Pennsylvania Supreme Court ruling opened the door for taxing skill games. The city is trying to get ahead of the state by taxing these machines in the hopes of being grandfathered into any state law. It would have to be determined if any state law would supersede city law.

"It's not up to the city of Pittsburgh to regulate these machines. We are just looking for additional revenue for the city of Pittsburgh that will be desperately needed," Coghill said.

Under the proposal, businesses would pay an annual tax of $1,000 on skill games, $100 for machines such as claw machines, and $10 for simple games like darts and shuffleboard. Players would not be paying any tax.

"So, it doesn't impact businesses, to a large degree, on the lesser fees," Coghill said.

The goal would be to get money from the skill game machines. This includes the storefronts that are essentially miniature casinos that have popped up around neighborhoods and are open 24/7.

"Everywhere and anywhere that has skill games or a mechanical device," Coghill said.

He conservatively estimates it would bring the city $2 million to $3 million. This would fill some of the gaps left by the Downtown assessments and the loss of the so-called jock tax. 

At this point, enforcement is still a question city leaders are working on. The hope is to have this bill ready to go before the budget season around September.