1. (a)

   1. (1) The gross receipts or gross proceeds derived from the operation of coin-operated pinball machines, coin-operated music machines, coin-operated mechanical or electronic games, coin-operated machines that distribute winnings as tangible personal property or as coupons that are redeemable for merchandise, and all other similar devices are subject to the tax.

   2. (2) Every person holding an Amusement Machine Operator’s License pursuant to Arkansas Code § 26-57-401 et seq., must:

      1. (A) Obtain a retail permit; and
      2. (B) Report and remit gross receipts tax.

2. (b)

   1. (1) The tax shall be deemed to be included in the charge for the use of the machine.
   2. (2) Total gross receipts shall be calculated by dividing the collected charges by the sum of one (1) plus the state tax rate plus any local tax rates.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules contained a footnote as follows: "Source: Ark. Code Ann. § 26-52-308"