Summary
Pennsylvania H.B. 2705 would impose a 10 percent sales tax on the sale of any video game rated “M” or “AO.”
A retailer that fails to remit the tax would be liable for 50 percent of the total tax owned.
Status
The bill was introduced on October 12, 2018 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. The memo was in response to the initial memorandum released by Quinn’s office about his intent to propose the bill.
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 September 25, 2018, Rep. Quinn released a memorandum issuing his intent to introduce a legislation that would impose a 10 percent tax on video games with violent content.
- On September 27, 2018, Media Coalition submitted a memo in opposition to the tax proposal.
- On October 12, 2018, the bill was introduced and referred to the House Committee on Finance.