South Carolina              
Administrative Law Court
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SC Administrative Law Court Decisions

CAPTION:
SCDOR vs. Kerri Metts, d/b/a All American Pawn and Community Amusements, Inc.

AGENCY:
South Carolina Department of Revenue

PARTIES:
Petitioners:
South Carolina Department of Revenue

Respondents:
Kerri Metts, d/b/a All American Pawn and Community Amusements, Inc.
 
DOCKET NUMBER:
00-ALJ-17-0360-CC

APPEARANCES:
Jeffrey M. Nelson, Esquire, for the Petitioner
 

ORDERS:

FINAL ORDER AND DECISION

STATEMENT OF THE CASE





This matter comes before the Administrative Law Judge Division for a contested case hearing pursuant to S.C. Code Ann. §§ 1-23-310 et seq. (Supp. 1999) and S.C. Code Ann. §12-4-30(D) (Supp. 1999). The South Carolina Department of Revenue (Department) contends that the Respondents violated S.C. Code Ann. § 12-21-2804(C) (Supp. 1999) by issuing a payout to a person under the age of twenty-one. In this case, the Department seeks revocation of Respondent All American Pawn's sales tax license (sales tax license # 03227024-8), or, in the alternative, revocation of Respondent All American Pawn's video games establishment license (license # 85503713-9). (1) A hearing was held on this matter at the offices of the Division in Columbia, South Carolina on October 24, 2000.

FINDINGS OF FACT Having observed the witnesses and exhibits presented

at the hearing and closely passed upon their credibility, taking into consideration the burden of persuasion by the parties, I make the following Findings of Fact by a preponderance of the evidence:

1. Notice of the time, date, place, and subject matter of the hearing was given to the

Petitioner and the Respondents.

2. Kerri Metts, d/b/a All American Pawn, located at 4211 Augusta Road in Lexington, South Carolina, is the holder of sales tax license # 03227024-8 and video game establishment license # 85503713-9.

3. On June 7, 1999, an underage cooperating individual (UCI) with the South Carolina Law Enforcement Division and the Lexington County Sheriff's Department,

entered All American Pawn. Upon entering the location, the UCI went to one of the licensed video poker machines and began playing. After successfully playing the machine, the UCI received a voucher for $19.00. The UCI then went to the cash register and presented the voucher to the cashier. The cashier, Kimberly McCants Pickett, cashed the voucher without asking the UCI how old she was or asking to see her identification. At the time, the UCI was nineteen years old.

CONCLUSIONS OF LAW



Based upon the above Findings of Fact, I conclude the following as a matter of law:

1. S.C. Code Ann. § 1-23-600 (Supp. 1999) grants jurisdiction to the Administrative Law Judge Division to hear contested cases under the Administrative Procedures Act (APA). Additionally, S.C. Code Ann. § 12-4-30(D) (Supp. 1999) specifically sets forth that the Administrative Law Judge Division shall preside over Department of Revenue cases heard pursuant to the APA.

2. "Where a statute is clear and unambiguous, there is no room for construction and the terms of that statute must be given their literal meaning." Duke Power Co. v. S.C. Tax Commission, 292 S.C. 64, 354 S.E. 2d 902, 903 (1987).

3. S.C. Code Ann. § 12-21-2804(C) (Supp. 1999) provides that "[n]o person under twenty-one years of age may receive a payout as a result of the operation of the machines licensed under Section 12-21-2720(A)(3)." Therefore, the payment of the voucher tendered by the UCI to the cashier at All American Pawn constituted a "payout" pursuant to S.C. Code Ann. § 12-21-2804(C) (Supp. 1999).

4. S.C. Code Ann. § 12-21-2804(F) (Supp. 1999) provides that:

A person violating subsections (A), (B), (D), or (E) of this section is subject to a fine of up to five thousand dollars to be imposed by the department. . . . The department shall revoke the licenses of any person issued pursuant to the provisions of Article 19 of this chapter for a violation of subsection (C) of this section.

5. In the present case, Respondent All American Pawn's employee clearly committed a violation of S.C. Code Ann. § 12-21-2804(C) (Supp. 1999) by giving a payout from a video poker machine to a person under twenty-one years of age. The Department seeks revocation of Respondent All American Pawn's sales tax license, or, in the alternative, Respondent All American Pawn's video game establishment license. S.C. Code Ann. § 12-21-2804(F) (Supp. 1999) provides that "[t]he Commission shall revoke the licenses of any person issued pursuant to the provisions of Article 19 of this chapter for a violation of subsection (C) of this section."(emphasis added). Therefore, I find that revocation of Respondent All American Pawn's sales tax license # 03227024-8 is appropriate.

ORDER



Based upon the foregoing Findings of Fact and Conclusions of Law,

IT IS HEREBY ORDERED that Respondent All American Pawn's sales tax license # 03227024-8 is revoked.

AND IT IS SO ORDERED.

________________________________

Ralph King Anderson, III

Administrative Law Judge

April 11, 2001

Columbia, South Carolina

1. It appears from the evidence submitted at the hearing that Respondent Community Amusements had surrendered its Class III machine licenses used at this location prior to the hearing into this matter.


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