| of the protective backing. It
is unlawful to enclose any tax permit in a plastic cover, or on a
removable cover made of plastic, metal, or any other material, or
to in any way affix the tax permit in a less than permanent manner
so the tax permit can be removed or moved from one machine to another
without the destruction of the tax permit resulting as a consequence
of such removal. Tax permits shall not be affixed by the use of tape.
Tax permits are not transferrable from one person to another or from
one machine to another, and cannot be affixed to a machine that has
not been registered with the comptroller.
(6) Invalid tax permits.
(A) Any tax permit not properly displayed as described
in paragraph (5) of this subsection is invalid. Any tax permit not
affixed to a permanent surface of a coin-operated amusement machine
as described in paragraph (5) of this subsection by use of the adhesive
backing on the permit is invalid. Any tax permit removed from a coin-operated
amusement machine is invalid.
(B) The comptroller will not issue a duplicate tax
permit to replace a tax permit that is invalid. A new tax permit must
be purchased to replace an invalid tax permit.
(C) The comptroller may assess a penalty of not less
than $50 or more than $2,000 against an owner who permits a coin-operated
amusement machine under the owner's control to be operated, exhibited,
or displayed in this state without a valid tax permit or against a
person who exhibits or displays a coin-operated amusement machine
in this state without a valid tax permit. The comptroller may assess
a penalty for each day a violation occurs.
(7) Issuance of extra tax permits. The comptroller
will issue tax permits only for coin-operated amusement machines that
are exhibited or displayed on location. The owner shall not stockpile
permits or attach tax permits to unregistered machines.
(f) Exemptions.
(1) Establishing an exemption. In order to establish
that an organization is exempt from the license requirements pursuant
to Occupations Code, §2153.005 (Exempt Corporations and Associations),
the organization must do the following:
(A) submit a written statement to the comptroller explaining
in detail the nature of the activities conducted or to be conducted,
a copy of the articles of incorporation if the organization is a corporation,
a copy of the bylaws, a copy of any applicable trust agreement or
a copy of its constitution, and a copy of any letter granting exemption
from the Internal Revenue Service; and
(B) furnish any additional information requested by
the comptroller including, but not limited to, documentation showing
all services performed by the organization and all income, assets,
and liabilities of the organization.
(2) Written notice. After a review of the material,
the comptroller will inform the organization in writing if it qualifies
for an exemption.
(3) Private ownership exemption. An individual who
owns a coin-operated amusement machine for personal use in the individual's
private residence is not required to obtain a license or pay a tax
under this section.
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| Source Note: The provisions of this §3.602 adopted to be effective December 17, 1996, 21 TexReg 11808; amended to be effective April 13, 2005, 30 TexReg 2097; amended to be effective June 4, 2020, 45 TexReg 3635 |
