LINCOLN- A Lancaster County Judge dismissed a lawsuit filed against the Nebraska Department of Revenue challenging the validity of the agency's interpretation and application of regulations regarding sales tax on mechanical amusement devices, in particular BankShot games. The case, filed by Bellevue-based American Amusements Co., was the second of its kind.

The first of these cases was filed by Music Service LLC of Omaha, and resulted in the same fate: a dismissal. However, despite both cases failing, it is not likely to be the end of this issue, since neither of the judges ruled on the merits of the cases themselves. At issue in both cases was a section of the Mechanical Amusement Device Tax Act.

"In its continuing efforts to interfere with the business of American Amusements and its operators/distributors, the department is now attempting to illegally require them ti pay sales tax on all monies deposited in BankShot devices by players dispute the Nebraska Legislature's clear and unequivocal exemption of those funds from sales tax," argued Thomas Culhane, the attorney for American Amusements.

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