Coin-Operated Machines Tax Frequently Asked Questions

A person who engages in the business of manufacturing, owning, buying, selling, renting, leasing, trading, repairing, maintaining, servicing, transporting, exhibiting or storing coin-operated machines in Texas needs 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.

• 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.
• An individual who owns and operates a coin-operated machine in his/her private residence exclusively for his/her personal use.

A registration certificate is required by someone who:

• Owns and operates 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 registration certificate is $150.

The $60 occupation tax is due annually on each coin-operated machine 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

All renewals are due Nov. 30 of each year.

You can request additional occupation tax permits for new machines by completing Form AP-141, Texas Application for Additional Coin-Operated Machine Tax Permits (PDF), and submitting the required tax payment by:

• Email to tax.applications@cpa.texas.gov;
In person at a local Comptroller field office; or
• Mail to:
  Texas Comptroller of Public Accounts
  111 E. 17th St.
  Austin, TX 78711-1440

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

License applicants must be 18 or older.

For additional information, read the Comptroller's publication, Coin-Operated Amusement Machine Regulation and Taxation (PDF), or visit our Contact Us webpage.