61 Pa. Code § 47.1 — Coin-operated amusement devices

The placing of coin-operated amusement and record playing devices in a store, restaurant or public place is not considered to be a rental when the owner-operator and the proprietor of the location are joint venturers and divide the proceeds from the device between themselves. It is a rental subject to tax when the proprietor of the location either pays a flat rental charge for the machine and retains all proceeds from the machine himself, or when the proprietor receives all the proceeds and pays a rent to the owner of the machine based on a percentage of the proceeds. In the case of a joint ventureship, the owner-operator of the amusement device shall pay tax upon the purchase of the device, and also upon the purchase by him of phonograph records, supplies, materials and equipment by him in the maintenance and repair of such devices. He should not collect tax from the person who is being provided a service in the form of entertainment upon depositing coins in the machine. Where the transaction is considered to be a rental to the proprietor of the location, the provisions of § § 31.4 and 32.3 (relating to rentals or leases of tangible personal property; and sales for resale) are applicable. No part of the information on this site may be reproduced for profit or sold for profit. This material has been drawn directly from the official Pennsylvania Code full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.