Municipal – Administrative – Privilege License – Taxation – Electronic Gaming Operations

Municipal – Administrative – Privilege License – Taxation – Electronic Gaming Operations (access required)

Smith v. City of Fayetteville Electronic gaming operations are legal, and the city has the authority to impose a privilege license tax on legal businesses. But the city may not impose a tax so prohibitively high that it prevents a business owner from conducting a profitable business unless the city can show that the tax was necessary to pay for increased police enforcement, or that the businesses suffered because of mismanagement rather than the increased tax.

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