OCCUPATIONAL TAX ON COIN-OPERATED DEVICES.

SEC. 403. OCCUPATIONAL TAX ON COIN-OPERATED DEVICES. (a) In General.—Section 4461 (relating to imposition of tax) is amended by striking out subsection (a) and so much of subsection (b) as precedes paragraph (1) and inserting in lieu thereof the following: “(a) In General.— There shall be imposed a special tax to be paid by every person who maintains for use or permits the use of, on any79 Stat. 149 place or premises occupied by him, a coin-operated gaining device (as defined in section 4462) at the following rates: “(1) $250 a year; and “(2) $250 a year for each additional device so maintained or the use of which is so permitted. If one such device is replaced by another, such other device shall not be considered an additional device. “(b) Exception.—No tax shall be imposed on a device which is commonly known as a claw, crane, or digger machine if—” (b) Definition.— Section 4462 (relating to definition of coin-operated amusement or gaming device) is amended to read as follows: “SEC. 4462. DEFINITION OF COIN-OPERATED GAMING DEVICE. “(a) In General.— For purposes of this subchapter, the term ‘coin-operated gaming device’ means any machine which is— “(1) 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 “(2) a machine which is similar to machines described in paragraph (1) and is operated without the insertion of a coin, token, or similar object. “(b) Exclusions.— The term ‘coin operated gaming device’ does not include— “(1) a bona fide vending or amusement machine in which gaming features are not incorporated; or “(2) 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) Clerical Amendment.— The table of sections for subchapter B of chapter 36 is amended by striking out: “Sec. 4462. Definition of coin-operated amusement or gaining device.” and inserting in lieu thereof: “Sec. 4462. Definition of coin-operated gaming device.”