The Honorable Ivan Williams 

Executive Director, Texas 

Amusement Machine Commission 

P. 0. Box 13226 

Austin, Texas 78711 

Opinion No. H- 719 

Re: Whether a coin-operated 

television is subject to 

taxation pursuant to 

Senate Bill 869. 

Dear Mr. Williams: 

You have requested our opinion regarding whether a coin-operated 

television is subject to taxation pursuant to the 1975 amendment to 

article 13.01, et seq., Tax. -Gen., V. T. C.S. (Acts 1975, 64th Leg., 

ch. 407, p. 1046). We understand these machines provide a.limited time 

of commercial television reception upon insertion of the proper coin. 

Article 13.02(l) imposes an annual occupation tax of $15.00 on every 

“coin-operated machine. ” Article 13.01(3) defines “coin-operated machine” 

as: 

. . . every machine or device of any kind or 

character which is operated by or tiith coins, 

or metal slugs, tokens or checks, ‘music 

coin-operated machines’ and ‘skill or pleasure 

coin-operated machines’ as those terms are 

hereinafter defined, shall be included in such 

terms. 

Unless exempted by another provision of the statute, a coin-operated television 

clearly falls within this definition. 

Article 13.03 exempts from taxation certain specific types of coin-operated 

machines and also ” ‘service coin-operated machines, ’ as that term is 

defined. ” “Service coin-operated machines” are defined in article 13.01(6) 

to include: 

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The Honorable Ivan Williams, page 2 (H-719) 

every pay toilet, pay telephone, and all 

other machines or devices which dispense 

service only and not merchandise, music, 

skill or pleasure. 

The question is therefore whether a coin-operated television dispenses 

” P leasure. ” If it does so, it is not a “service coin-operated machine” 

and consequently not within the exemption of article 13.03. 

“Pleasure” is defined as “a state or condition of gratification of the 

senses or mind. ” Webster’s New International Dictionary (3d ed., 1961). 

Judicial interpretations are in agreement, holding that “pleasure” is 

synonymous with “amusement. comfort and happiness,” Industrial Trust 

Co. v. Commissioner of Internal Revenue, 151 F. 2d 592, 594 (1st Cir., 

1945). and with comfort, consolation, contentment, ease, enjoyment, 

happiness and satisfaction. National Surety Co. V. Jarrett, 121 S.E. 291. 

295 (W. Va., 1924). While we are aware that there are those who would 

strenuously assert that television is no source of pleasure, happiness, 

contentment or gratification to them, it is legally well established that 

statutory words in common use will be read according to their most 

natural, ordinary and popular meaning, unless a contrary intention is 

clearly apparent from the context. V. T. G S. art. 10; Calvert v. Austin 

Laundry & Dry Cleaning Co., 365 S. W. 2d 232, 235 (Tex. Civ. App. --Austin 

1963, writ ref’d., n. r. e. ); National Life Co. v. Stegall, 169 S. W. Zd 155, 

157 (Tex. Sup. 1943). Thus, in our opinion, it is clear that, in the commonly 

understood meaning of the term, a coin-operated television must be legally 

deemed to dispense “pleasure. ” Accordingly, a coin-operated television 

of this type is not a “service coin-operated machine” and therefore not 

within the statutory exemption of article 13.03. 

SUMMARY 

A coin-operated television is not within the 

statutory exemption of article 13.03, V. T. C. S., 

Taxation-General, and is thus subject to taxation 

pursuant to Senate Bill 869. 

// 

Attorney General of Texas 

‘4 

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The Honorable Ivan Williams, page 3 (H-719) 

APPROVED: 

DAVID M. KENDALL, First Assistrtnt 

C. ROBERT HEATH, Chairman 

Opinion Committee 

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