Vending Machines

(1) All persons making sales of tangible personal property through coin-operated vending machines and electing to pay the Gross Receipts Tax imposed in Item 65(c)(1), T.C.A. § 67- 4-503, shall pay such tax in lieu of the Business Tax. If a person who is otherwise engaged in business and pays Business Tax on all taxable receipts and, as an incident thereto, sells merchandise through his own or leased vending machine and does not elect to pay the Gross Receipts Tax under said § 67-4-503, he is not liable for the per-machine privilege tax imposed in § 67-4-503, but shall be required to include receipts from such machine in the base for his Business Tax (2) If a vending machine operator sells tangible personal property by any means other than through vending machines, or makes charges for servicing coin-operated machines other than those he owns, he is subject to, and must pay, the appropriate Business Tax applicable to such other activities. BUSINESS TAX RULES AND REGULATIONS CHAPTER 1320-04-05