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Each person operating any vending machine for the benefit of a charitable nonprofit organization, by which merchandise of the market value of the coin deposited not exceeding twenty-five cents (25¢) is sold or delivered to customers, shall have the privilege and option of registration with the department of revenue, reporting gross receipts vended through such machines, and paying tax on such gross receipts, in lieu of sales tax, at the rate of one and one-half percent (1.5%) of the gross receipts from the machines, except that the percentage shall be two and one-half percent (2.5%) of the gross receipts of all tobacco items from the machines, in the same manner, with the same privileges and exemptions, and under the same regulation and administration as the tax codified in § 67-4-402.
For purposes of this section, “vending machine” means any machine built such that only a fixed, predetermined price can be paid for the item dispensed by such machine, the machine cannot return or make change, and the machine cannot be adjusted, mechanically, electronically or otherwise, to change the price charged for the item.
Gross receipts taxed under this section shall be exempt from the sales and use tax levied by chapter 6 of this title.
To comply with the option in subsection (a), the name and address of the owner, and, if different from the owner, the name and address of the charitable nonprofit organization must appear upon each vending machine, and each vending machine must have a permanent registration on forms provided by the department, at a cost for which the department may charge one dollar ($1.00) each, plus a fee of two dollars ($2.00) for each individual company so permanently registering.
Any person, firm or corporation engaged in this business shall immediately notify the department of its options to pay under this chapter, and, failing to notify the department, shall pay sales tax as provided by law.