OCCUPATIONAL TAX ON COIN-OPERATED DEVICES.

SEC. 152. OCCUPATIONAL TAX ON COIN-OPERATED DEVICES. (a) In General.— Section 4462 (definition of coin-operated amusement or gaming devices) is amended to read as follows: “SEC. 4462. DEFINITION OF COIN-OPERATED AMUSEMENT OR GAMING DEVICE. “(a) In General.— For purposes of this subchapter, the term ‘coin operated amusement or gaming device’ means— “(1) any machine which is— “(A) a music machine operated by means of the insertion of a coin, token, or similar object, “(B) a vending machine operated by means of the insertion of a one cent coin, which, when it dispenses a prize, never dispenses a prize of a retail value of, or entitles a person to receive a prize of a retail value of, more than 5 cents, and if the only prize dispensed is merchandise and not cash or tokens, “(C) an amusement machine operated by means of the insertion of a coin, token, or similar object, but not including any device defined in paragraph (2) of this subsection, or “(D) a machine which is similar to machines described in subparagraph (A), (B), or (C), and is operated without the insertion of a coin, token, or similar object; and “(2) any machine which is— “(A) a so-called ‘slot’ machine which operates by means of the insertion of a coin, token, or similar object and which, by application of the element of chance, may deliver, or entitle the person playing or operating the machine to receive, cash, premiums, merchandise, or tokens, or “(B) a machine which is similar to machines described in subparagraph (A) and is operated without the insertion of a coin, token, or similar object. “(b) Exclusion.—The term ‘coin-operated amusement or gaming device’ does not include bona fide vending machines in which are not incorporated gaming or amusement features.” 72 Stat. 1305 (b) Technical Amendment.—Section 4402 (2) (exemption from wagering taxes for coin-operated devices) is amended by striking out the period at the end thereof and inserting a comma and the following: “or on any amount paid, in lieu of inserting a coin, token, or similar object, to operate a device described in section 4462 (a) (2) (B), if an occupational tax is imposed with respect to such device by section 4461.” (c) Effective Date.— The amendments made by subsections (a) and (b) shall take effect on the effective date specified in section 1 (c) of this Act. In the case of the year beginning July 1, 1958, where the trade or business on which the tax is imposed under section 4461 of the Internal Revenue Code of 1954 was commenced before such effective date, the tax imposed for such year solely by reason of the amendment made by subsection (a)— (1) shall be the amount reckoned proportionately from such effective date through June 30, 1959, and (2) shall be due on, and payable on or before, the last day of the month the first day of which is such effective date.