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Texas Sales Tax Audit Coin Operated Machines

By February 18, 2019March 28th, 2024Texas Sales Tax

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.

Ansari Law Firm

Author Ansari Law Firm

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