Texas Sales Tax Audit: Coin Operated Machine Tax
A tax is imposed on any person engaged in any business dealing with coin-operated amusement machines OR engaged in business to own or operate coin-operated amusement machines exclusively on premises occupied by and in connection with the business.
Here is some good news. Section. 2153.004 states that machines which are exempt from taxation include:
- Stamp vending machine;
- Service coin-operated machine; or
- If subject to an occupation or gross receipts tax, a:
- gas meter;
- Food vending machine;
- Confection vending machine;
- Beverage vending machine;
- Merchandise vending machine; or
- Cigarette vending machine.
All public establishments which have coin-operated machines on their premises must obtain a permit for each machine from the Harris County Tax Office every year.
Note: Each individual machine must have the permit affixed.
Some costs and fees to keep in mind:
Registration certificate: $150;
occupation tax permit: $60;
general business license: $200 for 50 or fewer machines, $400 for 51-200 machines, $500 for 201 or more machines; import license: $500;
repair license: $50. [Note: Machine owners can repair their own machines without obtaining a repair license.]
Facing a sales tax audit in Texas? Contact our attorney for a consultation.
