## CD EXAS

July 20, 1951
Hon. Robert S. Cslvert Opinion No. V-1209 Comptroller of Public Accounts Austin, Texas Re: Legality of transferring a thirty dollar annual tax receipt on afive cent coin-

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Dear Mr. Calvert: operated marble table toa different kind offive cent coin-operated machine when the marble table is sold or destroyed. Your request for an opinion reads, in part, as follows:

“Section 4 (e) ofArticle IIIofHouse Bill 8, Chapter 495, Acts of the 44th Legislature, Third Called Session of 1936 [Art. 7047a-2, V.C.S.], reads as follows: ”‘The term “skill or pleasure coin-operated machines”as used herein shall mean and include every coin-operated machine ofany kind or character whatsoever, when such machine or machines dispense or are used or are capable ofbeing used, or operated for amusement or pleasure or when such machines are operated for the purpose ofdispensing or affording skill or pleasure, or for any other purpose other than the dispensing or vending of “merchandise or music” or “service exclusively, as those terms are defined herein. The following are express.ly included within said term: marble machines, marble table machines, marble shooting machines, miniature race track machines, miniature football machines, miniature g,olf machines, miniature bowling machines, and all other coin-operated machines which dispense or afford skill or pleasure.’ “The tax rate is $30 per calendar year on five cent coin-operated ‘skill or pleasure machines’ and $60 per calendar year when the coin or token used in operation is one ofthevalue in excess offive cents.

“If a coin-operated machine operator has paid $30 state tax on afive-cent coin-operated marble table and the marble table is sold or d,estroyed, couldHon. Robert S. Calvert, Page 2 (V-1209)

the $30 tax receipt issued for the marble table be transferred toafive-cent coin-operated miniature bowling machine? Or transferred to any other five-cent coinoperated skill or pleasure machine?

“If your answer to the above question is inthe affirmative, could the $30 coin-operated marble machine tax receipt be applied as credit on part payment ofthe tax on another type of ‘skill or pleasure machine’ that requires a ten-cent coin to operate and that carries an annual tax of $6’07 ” Article 7047a-3, V.C.S., provides, in part, as follows: “Every ‘Owner’ as that term is hereinabove defined, who owns, controls, possesses, exhibits, displays, or who permits tobe exhibited or displayed inthis State any ‘coin-operated machines’ as that term is defined herein, shall pay and there is hereby levied on every coin-operated machine as defined inthis Act, except such as are exempted herein, an annual occu determined by the following schedule:..
.” Ef$t.$s added.) Article 7047a-2, V.C.S., defines the term “owner” as follows: “The term ‘owner’ as used herein shall mean and include any person, individual, firm, company, association or corporation owning or having the care, control, management or possession ofany ‘coin-operated machine’ inthis State.” We have carefully examined all the provisions ofthe law which levy taxes upon coin-operated machines and find that the Legislature has not in any manner provided for either arefund of the tax levied or the transfer ofthe license or permit issued to evidence the payment ofthe tax to adifferent machine by reason of thefact that the machine is either sold, lost, destroyed, or is no longer in use.

We think it is clear thatArticle 7047a-3 levies an annual tax upon every coin-operated machine as defined inthe statutes levying the tax. Ifthe license or permit could be transferred toa different machine, the result would be that the annual tax levied against each machine would not be collected, but only an annual tax inthe stated amount would be collected by reason ofthe operation oftwo or more machines during the taxable year.. 1.

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Hon. Robert S. Calvert, Page 3 (V-1209)

We therefore answer your questions inthe negative.

SUMMARY The license or permit issued to the owner of a coin-operated machine evidencing the payment ofthe annual occupation tax cannot lawfully be transferred to adifferent coin-operated machine. Yours very truly,

APPROVED:
resse P. Luton, Jr. Reviewing As.sistant Charles D. Mathews First Assistant WVG/mwb PRICE DANIEL Attorney General

W. V. Geppert Assistant