78R7220 YDB-D

By:  Raymond                                                      H.B. No. 3494



A BILL TO BE ENTITLED

AN ACT

relating to the imposition of state and local occupation taxes on 
amusement gaming machines.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2153.002, Occupations Code, is amended 
by adding Subdivision (10) to read as follows:
		(10)  "Coin-operated amusement gaming machine":                        
			(A)  means a device described by Section 
47.01(4)(B), Penal Code, that would constitute a gambling device 
under Section 47.01(4), Penal Code, if it were not excluded from the 
definition of gambling device by Section 47.01(4)(B); and
			(B)  does not include:                                                
				(i)  a machine that awards the user noncash 
merchandise prizes, toys, or novelties solely and directly from the 
machine, including claw, crane, or similar machines; or
				(ii)  a machine from which the opportunity 
to receive a prize or a representation of value redeemable for a 
prize varies depending on the user's ability to throw, roll, flip, 
toss, hit, or drop a ball or other physical object into the machine 
or a part of the machine, including basketball, skeeball, golf, 
bowling, pusher, or similar machines.
	SECTION 2.  Section 2153.401, Occupations Code, is amended 
by amending Subsection (b) and adding Subsection (c) to read as 
follows:
	(b)  Except as provided by Subsection (c), the [The] tax rate 
is $60 per year.
	(c)  The tax rate for a coin-operated amusement gaming 
machine is an amount equal to 10 percent of the gross receipts 
generated by the machine.
	SECTION 3.  Section 2153.451, Occupations Code, is amended 
by amending Subsection (b) and adding Subsection (c) to read as 
follows:
	(b)  Except as provided by Subsection (c), the [The] rate of 
the tax may not exceed one-fourth of the rate of the tax imposed 
under Section 2153.401.
	(c)  The tax rate for a coin-operated amusement gaming 
machine is $100 per year.
	SECTION 4.  This Act takes effect October 1, 2003.