1. (a) Licenses and registration certificates.

   1. (1) Annual general business, import, and/or repair license fees, and registration certificate fees. Annual license and registration certificate fees are payable in advance and cannot be prorated quarterly.
   2. (2) Age requirement for issuance of a license. No natural person shall be issued a license by the comptroller for the operation of coin-operated machines unless at the time the license is issued the applicant is above the age of 18 years.
   3. (3) Information requirement for issuance of a license or registration certificate. An applicant for a license or registration certificate must complete all information asked for in the comptroller's application before a license or registration certificate will be issued or renewed.
   4. (4) Registration certificate notification requirement. A registration certificate holder must notify the comptroller in writing of any change in ownership of a machine and each time the location of a machine is changed within 10 days of the change.
   5. (5) Occasional sale exemption for registration certificate holder. A registration certificate holder may make one or two sales of coin-operated machines during any 12-month period if the certificate holder does not hold out as engaging (or does not habitually engage) in the business of selling coin-operated machines without losing the licensing exemption. Before the third sale of a coin-operated machine in a 12-month period by a certificate holder not previously in the business of selling, leasing, or renting coin-operated machines, a general business or import license must be obtained. The transfer of title or possession of more than one machine in a single transaction will constitute one sale.

2. (b) Annual general business, import and repair license renewals, and annual occupation tax.

   1. (1) License renewal applications are due November 30. License renewal applications will not be considered complete for processing unless the tax due as well as the license fee is remitted. Complete license renewal applications filed after the due date may result in the renewal license being issued after December 31, the expiration date of the existing license. In such a case a person may not operate amusement machines after the expiration date until the renewal license is issued. A person who operates amusement machines without a license or with an expired license is guilty of a Class B misdemeanor.
   2. (2) An applicant who properly completes the application and remits all fees and taxes with it by the due date may continue to operate amusement machines after the expiration date if the applicant's license renewal has not been issued unless the applicant is notified by the comptroller prior to the license expiration date of a problem with the license renewal.

3. (c) Annual registration certificate renewals and annual occupation tax.

   1. (1) Registration certificate renewal applications are due November 30. Registration certificate renewal applications will not be processed unless the tax due as well as the registration fee is remitted. Registration certificate renewal applications filed after the due date may result in the renewal registration certificate being issued after December 31, the expiration date of the existing registration certificate. In such a case, a person may not operate amusement machines after the expiration date until the renewal certificate is issued. A person who operates amusement machines without a registration certificate or with an expired registration certificate is guilty of a Class B misdemeanor.
   2. (2) An applicant who properly completes the application and remits all fees and taxes with it by the due date may continue to operate amusement machines after the expiration date even if the registration certificate renewal has not been issued unless the applicant is notified by the comptroller prior to the registration certificate expiration date of a problem with the registration certificate renewal.
   3. (3) License and registration certificate fees may not be prorated quarterly and the annual license or registration fee must be submitted with an application.

4. (d) Occupation tax permits.

   1. (1) Occupation tax. Each amusement machine is subject to the occupation tax at the time a person exhibits, displays, or permits a machine to be exhibited or displayed in this state with the exception of annual renewals. The occupation tax for annual renewals for each machine exhibited or displayed or permitted to be exhibited or displayed in this state is due November 30 of each year.
   2. (2) Rate schedule. The following rate schedule will be applicable to machines first exhibited or displayed or permitted to be exhibited or displayed in this state in any quarter of the calendar year:

Source Note:The provisions of this §3.602 adopted to be effective December 17, 1996, 21 TexReg 11808.