(a)Definitions. The following words
and terms, when used in this section, shall have the following meanings,
unless the context clearly indicates otherwise.
(1)Coin-operated amusement machine--Any kind of machine
or device operated by or with a coin or other United States currency,
metal slug, token, electronic card, or check, that vends or dispenses
music or is operated for skill or pleasure. The term does not include
an amusement machine designed exclusively for children under 12 years
of age.
(2)General business license holder--A person who may
engage in the business of manufacturing, owning, buying, selling,
renting, leasing, trading, maintaining, transporting, or exhibiting
in Texas, or storing a coin-operated amusement machine.
(3)Import license holder--A person who may engage
in the business of importing, transporting, owning, buying, repairing,
selling, or delivering a coin-operated amusement machine for sale
or delivery in this state.
(4)Person--An individual, association, trustee, receiver,
partnership, corporation, or other organization or legal entity, or
a manager, agent, servant, or employee of an individual, association,
trustee, receiver, partnership, corporation, or other organization
or legal entity.
(5)Registration certificate holder--A person who is
exempt from the licensing and recordkeeping requirements in Occupations
Code, Chapter 2153 (Coin-Operated Machines) but who may not exhibit
a coin-operated amusement machine unless the machine is registered
annually with the comptroller.
(6)Repair license holder--A person who may engage
in the business of maintaining, transporting, or storing a coin-operated
amusement machine.
(7)Tax permit--The decal issued by the comptroller
to an owner of a coin-operated amusement machine evidencing the payment
of the occupation tax.
(b)[(a)] Licenses and registration
certificates.
(1)Annual general business, import, and/or repair
license fees, and registration certificate fees. Annual license and
registration certificate fees for a general business license
holder, import license holder, repair license holder, and a registration
certificate holder are payable in advance and cannot be prorated
. The annual fees are as follows: [quarterly.]
(A)for a general business license
applicant with 50 or fewer machines, the fee is $200;
(B)for a general business license
applicant with 51 to 200 machines, the fee is $400;
(C)for a general business license
applicant with over 200 machines, the fee is $500;
(D)for an import license applicant,
the fee is $500;
(E)for a repair license applicant,
the fee is $50; and
(F)for a registration certificate
applicant, the fee is $150.
(2)Age requirement for issuance of a license or
registration certificate. No individual [natural
person] shall be issued a license or registration certificate by
the comptroller for the operation of coin-operated amusement machines
unless at the time the license or certificate is issued
the applicant is [more than] 18 years of age or older.
(3)Information requirement for issuance of a license
or registration certificate. An applicant for a license or registration
certificate must provide all information required on the [
by] comptroller's application before a license or registration
certificate will be issued or renewed.
(4)General business license and registration certificate
notification requirement. A general business license holder must notify
the comptroller in writing within 10 days of any change in ownership
of a coin-operated amusement machine. A registration certificate
holder must notify the comptroller in writing of any change in ownership
of a coin-operated amusement machine and each time the
location of a machine is changed within 10 days of the change.
(5)Occasional sale exemption for registration certificate
holder. A registration certificate holder may sell two [make
one or two sales of] coin-operated amusement machines
during any 12-month period without being required to obtain a
general business or import license, if the certificate holder
does not hold out as engaging (or does not habitually engage) in the
business of selling coin-operated amusement machines [without
losing the licensing exemption]. Before the third sale of a
coin-operated amusement machine in a 12-month period by
a registration certificate holder not previously in the
business of selling, leasing, or renting coin-operated amusement machines,
a general business or import license must be obtained. The transfer
of title or possession of more than one machine in a single transaction
will constitute one sale.
(c)[(b)] Annual general business,
import, and repair license renewals[, and annual occupation
tax].
(1)License renewal applications are due November 30.
License renewal applications will not be considered complete for processing
unless the tax due and the license fee are remitted. Complete license
renewal applications filed after the due date may result in the renewal
license being issued after December 31, the expiration date of the
existing license. In such a case a person may not operate coin-operated
amusement machines after the expiration date until the renewal
license is issued. A person who operates coin-operated amusement
machines without a license or with an expired license is guilty of
a Class A misdemeanor.
(2)An applicant who properly completes the license
renewal application and remits all fees and taxes with it by
the due date may continue to exhibit or display coin-operated [
operate] amusement machines after the expiration date if the
applicant's license renewal has not been issued unless the applicant
is notified by the comptroller prior to the license expiration date
of a problem with the license renewal.
(3)The annual license fee must be
submitted with a license renewal application. License fees may not
be prorated.
(4)Late-filed application for license
renewal. If an application for renewal of an unexpired license is
postmarked December 1 - December 31, the applicant must remit a late
fee of $50 in addition to the annual license fee listed in subsection
(b)(1) of this section.
(5)Application for renewal of an
expired license.
(A)A license holder may renew an expired license 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 license fee listed
in subsection (b)(1) of this section.
(B)A license holder may renew an expired license 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 license fee listed in subsection (b)(1) of this section.
(C)A person whose license has been expired for two
years or more may not renew their license and must comply with the
requirements and procedures for obtaining a new license under subsection
(b) of this section. In addition to other penalties allowed by law,
each person whose license has been expired for two years or more and
who has been engaged in business as a general business license holder,
import license holder, or repair license holder must remit to the
comptroller an amount equal to two times the amount of the annual
license fee listed in subsection (b)(1) of this section for each year
that the person engaged in business with an expired license.
(d)[(c)] Annual registration
certificate renewals [and annual occupation tax].
(1)Registration certificate renewal applications are
due November 30. Registration certificate renewal applications will
not be processed unless the tax due and the registration fee are remitted.
Registration certificate renewal applications filed after the due
date may result in the renewal registration certificate being issued
after December 31, the expiration date of the existing registration
certificate. In such a case, a person may not exhibit or display
coin-operated [operate] amusement machines after
the expiration date until the renewal certificate is issued. A person
who exhibits or displays coin-operated [operates]
amusement machines without a registration certificate or with an expired
registration certificate is guilty of a Class A misdemeanor.
(2)An applicant who properly completes the registration
certificate renewal application and remits all fees and taxes
with it by the due date may continue to exhibit or display coin-operated
[operate] amusement machines after the expiration
date even if the registration certificate renewal has not been issued
, unless the applicant is notified by the comptroller prior
to the registration certificate expiration date of a problem with
the registration certificate renewal.
(3)Registration [License and registration
] certificate fees may not be prorated [quarterly]
and the [annual license or] registration fee must be submitted
with the registration certificate renewal [an]
application.
(4)Late-filed application for registration
certificate renewal. If an application for renewal of an unexpired
registration certificate is postmarked December 1 - December 31, the
applicant must remit a late fee of $50 in addition to the annual registration
certificate fee listed in subsection (b)(1) of this section.
(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)[(d)] Occupation tax permits.
(1)Occupation tax. Each coin-operated amusement
machine that an owner [is subject to the occupation
tax at the time a person] exhibits, displays, or permits [a
machine] 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. [with the exception of annual
renewals.] 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 [Rate schedule].
The tax rate is $60 per year. When a coin-operated amusement
machine is [following rate schedule will be applicable
to machines] first exhibited or displayed or permitted to be
exhibited or displayed in this state, the occupation tax for [
in any quarter of] 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.
[Figure: 34 TAC §3.602(d)(2)]
(3)Replacement of lost, stolen, or destroyed valid occupation
tax permits [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 [including] 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 [operated]
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 [said]
machine must be clearly visible on the outside surface of the machine
[cabinet]. If a coin-operated machine is not manufactured
with a serial number, a license holder [licensee]
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) [(a)(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
[securely] affixed to any permanent surface of
the coin-operated amusement [on a] machine to
make [in such a manner that] 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 [permits may be clearly seen by the public
and] cannot be removed without [the] continued application
of steam and water. Tax permits shall [not] be completely
affixed [attached] 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 [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.
Cont'd...
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