Coin-Operated Amusement Machines Tax Frequently Asked Questions

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.

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.

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.

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

All renewals are due November 30 of each year.

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

• By email at tax.applications@cpa.texas.gov
• By regular mail from Texas Comptroller of Public Accounts, 111 E. 17th St., Austin, TX 78711-1440
• At any Comptroller's Enforcement field office

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.

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.

License applicants must be 18 or older.

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.