Summary
Pennsylvania H.B. 109 would impose a 10 percent tax on the sale of any video game rated “Mature” or “Adults Only” by the video game industry rating system.
This tax is in addition to any other generally applied state or local tax. The “Mature” rating is designated for content that may contain intense violence, blood, gore, sexual content or strong language. The “Adults Only” rating is given to video games with content that may include prolonged scenes of intense violence, graphic sexual content or gambling with real currency.
Status
The bill was introduced on January 28, 2019 and referred to the House Committee on Finance.
Action
Media Coalition submitted a memo in opposition to Rep. Chris Quinn, explaining that a 10 percent sales tax on video games with violent content is unconstitutional.
Analysis
- Video games are fully protected by the First Amendment, entitled to the same protection as books, newspapers, movies or music. Violent images or description in video games are also protected by the First Amendment. Brown v. Entertainment Merchants Association and Entertainment Software Association (2011)
- The state may not levy a tax on a video game — or other media — based on content. Such a tax would be a content-based punishment on speech that is impermissible under the First Amendment. Arkansas Writer’s Project, Inc. v Ragland (1987) and Minneapolis Star v. Minnesota Commissioner of Revenue (1983)
- The state also may not impose a content-based tax on speech in one media while exempting others. United States v. Playboy Entertainment Group (2000)
- The Supreme Court has rejected the argument that the social science research warrants legislation to regulate video games with violent content. Brown (2011)
- The Supreme Court has also held, “The Government may not prohibit speech because it increases the chance an unlawful act will be committed ‘at some indefinite future time.'” Ashcroft v. Free Speech Coalition (2002), citing Hess v. Indiana (1973)
History
- On January 31, 2019, Media Coalition submitted a memo in opposition to the tax proposal.
- On January 28, 2019, the bill was introduced and referred to the House Committee on Finance.