| (5) Application for renewal of an expired registration
certificate.
(A) A registration certificate holder may renew an
expired registration if it has not been expired for more than 90 days
by paying to the comptroller a fee that is 1-1/2 times the amount
of the annual registration fee listed in subsection (b)(1)(F) of this
section.
(B) A registration certificate holder may renew an
expired registration if it has been expired for more than 90 days
but less than two years by paying to the comptroller a fee that is
two times the amount of the annual registration fee listed in subsection
(b)(1)(F) of this section.
(C) A person whose registration has been expired for
two years or more may not renew their registration and must comply
with the requirements and procedures for obtaining a new registration
certificate under subsection (b) of this section. In addition to other
penalties allowed by law, each person whose registration has been
expired for two years or more and who has been engaged in business
as a registration certificate holder must remit to the comptroller
an amount equal to two times the amount of the annual registration
fee listed in subsection (b)(1) of this section for each year that
the person engaged in business with an expired registration.
(e) Occupation tax permits.
(1) Occupation tax. Each coin-operated amusement machine
that an owner exhibits, displays, or permits to be exhibited or displayed
in this state is subject to an annual occupation tax. With the exception
of annual renewals, the occupation tax is due at the time the owner
exhibits or displays the machine, or permits the machine to be exhibited
or displayed, in this state. The occupation tax for annual renewals
for each machine exhibited or displayed or permitted to be exhibited
or displayed in this state is due November 30 of each year. The purchase
of a tax permit is payment of the occupation tax.
(2) Tax rate. The tax rate is $60 per year. When a
coin-operated amusement machine is first exhibited or displayed or
permitted to be exhibited or displayed in this state, the occupation
tax for the calendar year is prorated as follows:
(A) for a tax permit issued January 1 to March 31,
the amount of tax is $60;
(B) for a tax permit issued April 1 to June 30, the
amount of tax is $45;
(C) for a tax permit issued July 1 to September 30,
the amount of tax is $30; and
(D) for a tax permit issued October 1 to December 31,
the amount of tax is $15.
(3) Replacement of lost, stolen, or destroyed valid
occupation tax permits. The comptroller shall provide a duplicate
tax permit if a valid tax permit has been lost, stolen, or destroyed.
The fee for each duplicate tax permit is $5.00. If a valid tax permit
is lost, stolen, or destroyed, a written statement must be submitted
explaining the circumstances by which the tax permit was lost, stolen,
or destroyed, and must include the number of the lost, stolen, or
destroyed tax permit before a replacement tax permit can be issued.
A tax permit for which a duplicate permit has been issued is void.
(4) Assignment of tax permits. Each coin-operated amusement
machine exhibited or displayed in Texas for music, skill, or pleasure
shall be registered with the comptroller by make, model, and serial
number. A tax permit issued by the comptroller shall be affixed to
each registered machine. Each coin-operated amusement machine shall
have a serial number, and the name and telephone number of the owner
of each machine must be clearly visible on the outside surface of
the machine. If a coin-operated machine is not manufactured with a
serial number, a license holder or registration certificate holder
shall assign a serial number to the machine and either stamp or engrave
the assigned number on the machine cabinet. If all these requirements
have been met, a tax permit may be assigned to a purchaser by submitting
written notice, as described in subsection (b)(4) of this section,
to the comptroller within 10 days of the transfer of title or possession
of a coin-operated amusement machine.
(5) Attachment of tax permits. Tax permits shall be
conspicuously affixed to any permanent surface of the coin-operated
amusement machine to make the tax permit visible for inspection without
movement of the machine. Tax permits shall be securely and completely
affixed to the coin-operated amusement machine so they cannot be removed
without continued application of steam and water. Tax permits shall
be completely affixed to a permanent surface of the coin-operated
amusement machine by use of the adhesive exposed on the back of the
tax permit following complete removal 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.
|
