taxes

Coin-Operated Amusement Machines Tax Frequently Asked Questions

Who needs a general business license?

License holders engaging in the business of manufacturing, owning, buying, selling, renting, leasing, trading, repairing, maintaining, servicing, transporting, exhibiting or storing coin-operated amusement machines in Texas need a Comptroller-issued general business license. When paid by the due date, the annual fee for a license is $200, $400 or $500, depending on the number of machines owned.

Who is exempt from licensing, registration or the occupation tax?

Organizations operating exclusively for charitable, educational, religious or benevolent purposes are exempt from licensing, registration and the occupation tax. An organization with social or fraternal activities does not qualify for exemption. Machines designed exclusively for children under 12 years of age are also exempt. An individual owning and operating a coin-operated amusement machine in his/her private residence exclusively for his/her personal use is exempt from licensing, registration and the occupation tax.

Who needs a registration certificate?

A registration certificate is needed by a person who:

  • owns and operates amusement machines only in his or her own place of business;
  • owns no machine subject to the occupation tax imposed by this chapter located on the business premises of another person; and
  • has no financial interest, direct or indirect, in the coin-operated music, skill or pleasure machines industry, except for the machines he or she owns.

When paid by the due date, the annual fee is $150.

What is the occupation tax?

The $60 occupation tax is due annually on each coin-operated amusement machine that is displayed in Texas. An occupation tax permit (decal) affixed to each machine shows that the tax has been paid. The tax can be prorated quarterly for machines placed in service for the first time in Texas during the year

How can I get occupation tax permits (decals) for new machines?

You can request applications for occupation tax permits for additional machines displayed during the year can be requested

For additional permits, Form AP-141, Texas Application for Additional Coin-Operated Machine Tax Permits (PDF), and payment of the tax due must be submitted together.

What is the requirement regarding the distribution of gross receipts from amusement machines?

No more than 50 percent of the gross receipts from a coin-operated amusement machine can be contracted to a bailee or lessee by the license holder.

What is the age requirement for issuing a license?

License applicants must be 18 or older.

Where can I get further help?

For additional information, read the Comptroller's publication, Coin-Operated Amusement Machine Regulation and Taxation (PDF), or call one of our tax specialists at 1-800-531-5441, ext. 33731.