HB436 Alabama 2017 Session

Summary

Primary Sponsor

David FaulknerRepresentative

Republican

Session

Regular Session 2017

Title

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

Summary

HB436 would replace the current sales-based license Tax on coin-operated machines with an annual master license fee plus a per-machine fee for bona fide amusement machines, with enforcement penalties and a large-location exemption.

What This Bill Does

Requires owners of bona fide amusement machines to obtain an annual master license and pay a fee that ranges from $500 to $5,000 depending on how many machines they own; smaller operators pay less under a five-level schedule. Imposes an additional $25 per year per machine—collected by the Alabama Department of Revenue—for machines offered to the public for play. Preempts local governments from charging other taxes or fees on these machines and sets rules for decals, enforcement, and penalties; large single-location operators (50 machines or more) are exempt and continue under their current fee structure. Establishes civil penalties for noncompliance (missing decals, operating without decals, etc.), a hearing process, possible confiscation of machines, and anti-gambling language.

Who It Affects

• Owners of bona fide amusement machines who must obtain a master license, pay the applicable fees, and affix decals to each machine.
• Location owners/operators who host these machines and must ensure decals are displayed and compliance is maintained.
• Large single-location operators with 50 or more machines, who are exempt from the new fees and continue under their current fee structure.
• The Alabama Department of Revenue, which administers and collects the master license and per-machine fees and enforces compliance.

Key Provisions

• Section 1: Establishes the Amusement-Entertainment Machine Fee Act; excludes a single business location with 50+ machines, which remains under the current fee structure.
• Section 2: Defines terms including bona fide amusement machine, master license, decal, location owner, and owner; lists eligible machine types and exclusions (e.g., washing machines, vending machines, meters, pay phones).
• Section 3: Fees are exclusive; local governments cannot impose additional taxes or fees on machines; fees are collected by the Alabama Department of Revenue and rules may be issued.
• Section 4: Sets master license fees by level (five tiers) and offers a six-month license option with different amounts; licenses are nontransferable and require renewal with deadlines and decals.
• Section 5: Imposes an annual per-machine fee of $25; decals are issued when the fee is paid; no refunds if machines are discontinued before year-end.
• Section 6: Establishes civil penalties for decal-related violations (typically $500–$1,000 per machine) and defines penalties for knowingly violating or removing decals.
• Section 7: Outlines notice, hearing rights, and procedures for contesting penalties or confiscations; penalties may be collected in the county where the violation occurred; funds go to the State General Fund.
• Section 8: Reiterates that the act does not legalize illegal devices or authorize gambling on devices.
• Section 9: Provides that the act becomes effective immediately after passage and approval.

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