HB445 Alabama 2016 Session

Summary

Primary Sponsor

David FaulknerRepresentative

Republican

Session

Regular Session 2016

Title

Coin operated amusement machines, taxation, annual license tax, penalties, Amusement-Entertainment Machine Fee Act

Summary

HB445 replaces the current sales-based fee for coin-operated amusement machines with an annual license fee system, plus location licenses, decals, and penalties to enforce compliance.

What This Bill Does

If passed, the bill would require owners and operators of bona fide coin-operated amusement machines to pay annual license fees based on machine counts, starting in 2017, and to obtain a location license of $15 per machine. It would exempt single business locations with 50 machines or more from the new fee structure and keep those locations on their current fees. It would also require decals on each machine, give the state revenue department enforcement power, and impose civil penalties for decal violations, with possible confiscation after 60 days; penalties go to the State General Fund.

Who It Affects

• Owners/operators of bona fide coin-operated amusement machines who must pay master license fees based on the number of machines and obtain a location license.
• Location owners/operators who must display a location license and ensure decals are attached to each machine.
• Single business locations with 50 machines or more, which remain under their current fee structure and are not subject to the new license framework.
• Alabama Department of Revenue, which would collect the fees and enforce compliance.

Key Provisions

• Establishes the Amusement-Entertainment Machine Fee Act to levy annual fees on owning/operating bona fide coin-operated amusement machines for public play.
• Exempts single business locations with 50 machines or more from the new fee structure; they operate under current fees.
• Defines terms including bona fide coin-operated amusement machine, master license, location license, and decals.
• Imposes an annual master license fee with tiered levels based on machine counts (Level 1 up to 10, Level 2 up to 50, Level 3 51-100, Level 4 101+), plus potential additional amounts as machines increase within a calendar year.
• Imposes a separate annual location license fee of $15 per machine, collected by the Department of Revenue.
• Requires decals on each machine and sets penalties for operating without decals or removing decals (civil penalties up to $50 per non-compliant machine, $100 per machine for decal violations).
• Allows the commissioner to suspend/revoke licenses for tax delinquencies or other violations and to confiscate non-compliant machines after 60 days.
• All penalties benefit the State General Fund; the act also limits local governments from taxing these machines beyond this act.
• Effective date provisions: fees start for tax year 2017, with implementation rules and processes set by the Department of Revenue.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Coin-Operated Amusement Games