February 9, 1954
Hon. Robert S. Calvert
Comptroller of Public Accounts
Capitol Station
Austin, Texas Opinion No. S- 122
Re: Applicability of the tax on
coin-operated machines im-
posed by Article 7047a-2, et
seq., V.C.S., to coin-operat-
ed devices installed solely as
Dear Mr. Calvert: a service to the customers.
Your request for an opinion from this office reads
in part as follows:
L‘
. . . There are now a number of coin-operated
rides located in business establishments such as: gro-
cery stores, department stores, drug stores, etc. The
operators and owners of these rides state that the rides
ar,e installed by the establishments solely as a service
to their customers. The machines do not dispense any
merchandise.”
The definitions of terms and phrases as used in the
“coin-operated machine tax” statute appear in Article 7047a-2,
V.C.S. Subsection (f) reads as follows:
‘The term ‘service coin-operated machines’ shall
mean and include pay toilets, pay telephones and all other
machines or devices which dispense service only and not
merchandise, music, skill or pleasure.”
Article 7047a-4 states as follows:
,* Gas meters, pay telephones, pay toilets, and cigar-
ette vending machines which are now subject to an occu-
pation or gross receipts tax and ‘service coin-operated
machines’ as that term is defined, are expressly exempt
from the tax levied, herein, and the other provisions of
this Section.”
A determination that the machines are installed sole-
ly as a service,to the customers of the various business establish-
ments warrants the exemption of these devices from the tax as
Hon. Robert S. Calvert, page 2 (S-122)
“service coin-operated machines.”
You refer us to our Opinion No. S-91. The statement
of facts in this earlier opinion indicates machines devoted to the
dispensing of pleasure. The devices described in your present re-
quest denote the dispensing of a service as distinguished from the
dispensing of pleasure.
SUMMARY
Coin-operated machines installed in business es-
tablishments solely as a service to the customer are
exempt from the coin-operated machine tax.
Yours very truly,
JOHN BEN SHEPPERD
Attorney General
By!j&$!&..,- wu
William W. Guild
Assistant
APPROVED:
W. V. Geppert
Taxation Division
Robert S. Trotti
First Assistant
John Ben Shepperd
Attorney General
WWG:mg
Untitled Texas Attorney General Opinion
Combined Opinion