HB595 Summary

• Establishes the "Amusement-Entertainment Machine Tax Act" creating an annual license fee system for coin-operated amusement machines used for commercial purposes, replacing the existing sales-based tax system.

• Imposes tiered master license fees based on number of machines owned: Level 1 ($500 for 1-5 machines), Level 2 ($1,500 for 6-50 machines), Level 3 ($3,000 for 51-100 machines), and Level 4 ($5,000 for 100+ machines).

• Requires location owners to pay an annual location license fee of $15 per machine at each premises where machines operate, with machines displaying stickers as proof of compliance.

• Establishes civil penalties ranging from $50 to $100 per machine for violations including operating without valid stickers, failing to display location licenses, and intentionally removing stickers; machines without valid stickers may be confiscated after 60 days.

• Designates the Alabama Department of Revenue as administrator; prohibits local governments from imposing additional taxes or fees on amusement machines; effective beginning January 1, 2016.