Indiana Vending Council Calls For Support Challenging Indiana Vending Tax

Jeff Snyder, CEO of Snyder Food Services, Inc. in Kendallville, Ind., and president of the Indiana Vending Council recently asked association members to support a challenge to an Indiana vending tax law that is pending in court.

According to Snyder, RDM Sales and Service, Inc. v. Indiana Department of State Revenue (Case No. 82T10-1001-TA-3) is currently pending before the Indiana Tax Court. This case disputes the imposition of taxes on vending machine sales in a number in ways. Specifically, that the application of sales tax on certain items sold through a vending machine, that are not similarly taxed when sold in a convenience or grocery store, is discriminatory and unconstitutional. The case, relating to sales in years 2006, 2007 and 2008, and is expected to go to trial this fall.

The lawsuit was filed by Rob Schlachter, president of RDM Sales and Service and challenges what he believes is a discriminatory practice of taxing 20-ounce bottled water sold through a vending machine and not taxing it in any other sales channel.

Because the case deals solely with the 20-ounce bottled water vending tax, the board of governors for the Indiana Vending Council is extremely optimistic for a favorable decision by the tax court judge. The board hopes all discriminatory taxes will disappear with a favorable judgment from the court.

The purpose of Snyder’s letter was to first inform members of the legal action, but second to “…educate the industry on the fact that lawsuits cost money and that the financial burdens of this type of action would be life threatening to many of our companies. We have spoken with the attorneys for RDM and have decided to begin a fundraising campaign to assist with RDM's legal costs. Our fundraising goal is $50,000.00. We believe that this amount will allow us to move forward to a successful decision.”

The association is asking for donation to this cause. Checks can be made payable to the RDM Victory Fund and mailed to: Indiana Vending Council, PO Box 56074, Indianapolis, IN, 46526.

For more information, contact Jeff Snyder at 260 347-4802.