The Coin-Operated Amusement Machine Tax Act provides that the tax imposed by this act is a state tax only and is levied on "bona fide coin-operated amusement machines" which are any coin or token operated game, machine or device which, as a result of depositing a coin, token or other object, automatically or...through some mechanical or electronic operation involving skill, chance or a combination thereof, affords music, amusement or entertainment without vending any merchandise.
The term "bona fide coin-operated amusement machine" is not synonymous with the term "vending machine." A "vending machine" is defined in state law as a machine that sells a tangible item (vends merchandise) with a market value roughly equal to the value of the money or money equivalent deposited into the machine.
The new section provides that an annual license tax will be levied on the privilege of owning bona fide coin-operated amusement machines for commercial use by the public. The tax year begins July 1 and ends the following June 30. Prior to exercising this privilege, each owner of any bona fide coin-operated amusement machines shall pay the annual license tax according to the number of machines owned.
Any owner making a machine available for use and play by the public without a current master license or without a decal affixed to the machine, a business owner or operator who permits such machines to be operated on the business' premises without display of a copy of the owner's master license or a decal affixed to a machine, and any person that removes a machine tax decal from such machine, except as permitted instate law, commits a misdemeanor offense.
Tennessee residents may call the statewide toll-free number at 1-800-342-1003 for more information or visit www.state.tn.us/revenue.
SOURCE:
ZWire.com
