Partial List of Tax Relief
August 2002

 

 

Many states have recognized the special needs and problems of our industry and have enacted exemptions or reduced charges for sales through bulk vending machines. Since bulk vending represents less than 1% of the entire vending industry, most legislators have been sympathetic and helpful. For example, New York, Texas and Kentucky exempt all sales at 50¢ or less. California has a 25¢ exemption.

The essential ingredient to this special legislative recognition is our definition of a bulk vending machine which distinguishes us from the balance of the vending industry.

Our traditional definition of a bulk vending machine is as follows:

"A non-electrically operated vending machine containing unsorted confections, nuts or merchandise which, upon insertion of a coin, dispenses the same in equal portions, at random and without selection by the customer."

A broader definition which will also include the electrically operated machines is as follows:

"A vending machine containing unsorted confections, nuts or merchandise which, upon insertion of a coin, dispenses the same in equal portions, at random and without selection by the customer."

A number of states recognize our bulk vending definition and then either exempt our products from the sales tax entirely or tax or license them at reduced rates. Some of those states also require that the bulk vending products comprise the primary source of business for that operator. For example, states which exempt all bulk vending items sold for a specific dollar amount or less are California, Colorado, Illinois, Indiana, Maryland, Michigan, and Texas, while states that also require that the retailer is primarily involved in bulk vending include Kentucky, Maine, Massachusetts, New Jersey and New York. A number of other states may grant relief but the relief is not limited to bulk vending operators by definition, but rather are limited by the price of the items vended.

This list is believed current and accurate as of this date, but obviously these laws change and therefore the laws in effect after this date must be reviewed on a current basis.

Here is the summary of the states granting tax relief to our members:
California California Revenue and Taxation Code § 6359.4 (2002)
  • Any vending machine operator who sells food products which sell at retail for 15¢ or less is exempt.
  • Bulk vending machine operators who sell food products, other than beverages or hot prepared foods, are exempt, if the amount of each sale is 25¢ or less.
Colorado Colo. Rev. Stat. § 39-26-114(7) (2002)


Colo. Rev. Stat. § 39-26-114(7.5) (2002)
  • Each vendor must be licensed under Section 39-26-103 and pay a fee of 10¢ per machine.
  • Items sold through vending machines that retail at 15¢ or less are exempt.
  • As of January 1, 2000, all sales and purchases of food by or through vending machines are exempt from taxation.
Connecticut Conn. Gen. Stat. § 12-412(27) (2002)

Conn. Gen. Stat. § 12-412(13) (2002)
  • Sales of items for 50¢ or less and sales of food products sold through coin-operated vending machines are exempt.
  • Soft drinks and candy are not included in the definition of "food products".
Florida Fla. Stat. ch. 212.08(7)(z) (2002)
  • Food and drinks sold for 25¢ or less through a coin operated vending machine sponsored by a non-profit corporation qualified as non-profit pursuant to § 501(c)(3) or (4) of the IRC of 1986, as amended, are exempt.
Idaho Idaho Code § 63-3622L (2002)
  • Articles sold through a coin-operated vending machine for 11¢ or less are exempt from taxes.
Illinois 35 ILCS 120/1 (2002)
  • Sales from bulk vending machines of 50¢ or less are exempt from taxes, effective January 1, 2002.
Indiana Ind. Code Ann. § 6-2.5-2-2(a) (Michie 2002)
  • Sales of items for less than 10¢ are exempt from taxes.
Kentucky Ky. Rev. Stat. Ann. § 139.470(6) (Michie 2002)
  • Gross receipts from sales of tangible personal property sold through coin-operated bulk vending machines are exempt if the sale amounts to 50¢ or less, if the retailer is primarily engaged in making the sales and maintains records satisfactory to the cabinet.
Louisiana La. Rev. Stat. Ann. § 47:301(10)(b) (West 2002)
  • The sale of tangible personal property to a vending machine dealer is taxed. The subsequent resale of the property by the dealer through vending machines is not taxed.
Maine Me. Rev. Stat. Ann. tit. 36, § 1760(34)  (West 2002)
  • No tax on sale of products for internal human consumption when sold through coin operated vending machines by a person more than 50% of whose gross receipts from the retail sale of tangible personal property are derived from sales through vending machines.
Maryland Md. Code Ann. Tax-Gen § 11-201.1 (2002)

Md. Code Ann. Tax-Gen § 11-206(g) (2002)
  • Sales of tangible personal property through a bulk vending machine for 25¢ or less are exempt from sales and use tax, effective July 1, 2000.
  • Also, no tax imposed on sale of snacks sold from vending machines. Snacks are defined as potato chips and sticks; corn chips, pretzels, cheese puffs and curls, pork rinds, extruded pretzels and chips; popped popcorn, nuts and edible seeds, or snack mixtures that contain any one or more of the foods listed above.
Massachusetts Mass. Gen. Laws Ann. ch. 64H, § 6(h) (West 2002)
  • Sales of snacks and candies sold through a vending machine under $3.50 are exempt.
Michigan Mich. Comp. Laws Ann. § 205.54(g)(1)(a) (West 2002)
  • Sales of food or drink for human consumption are exempt from tax, except prepared food intended for immediate consumption, as defined by § 205-54(g)(4).
Missouri Mo. Rev. Stat. § 144.012(1) (2002)


Mo. Rev. Stat. § 144.030(2)(19) (2002)
  • Sales of tangible personal property through a vending machine shall be deemed a sale at retail and thus subject to certain sales taxes.
  • All sales by a vendor of tangible personal property from vending machines located on the premises of religious and charitable organizations or primary and secondary schools operated at public expense are exempt.
New Hampshire N.H. Rev. Stat. Ann. § 78-A:6(II) (2002)





N.H. Rev. Stat. Ann. § 78-A:3(X) (2002)
  • No sales tax but there is a meals tax based upon the charge as follows:
    (a) 3¢ for a charge between 36¢ and 37¢ inclusive;
    (b) 4¢ for a charge between 38¢ and 50¢ inclusive;
    (c) 5¢ for a charge between 51¢ and 62¢ inclusive;
    (d) 6¢ for a charge between 63¢ and 75¢ inclusive;
    (e) 7¢ for a charge between 76¢ and 87¢ inclusive;
    (f) 8¢ for a charge between 88¢ and $1.00 inclusive; and
    (g) 8% of the charge for taxable meals over $1.00
  • Meals include food sold through vending machines.
New Jersey N.J. Stat. Ann. § 54:32B-8.9 (2002)
  • Sales of tangible personal property sold through coin-operated vending machines at 25¢ or less are exempt provided the retailer is primarily engaged in making such sales and maintains records satisfactory to the director.
New York N.Y. Tax Law § 1115(13-a) (McKinney 2002)
  • Tangible personal property sold through coin-operated bulk vending machines at 50¢ or less is exempt provided the retailer is primarily engaged in making such sales and maintains records satisfactory to the state tax commission.
North Carolina N.C. Gen. Stat. § 105-164.13(30) (2002)

N.C. Gen. Stat. § 105-164.13(50) (2002)
  • Sales from vending machines when sold by the owner or lessee of the machines at a price of 1¢ are exempt.
  • Also exempt, 50% of the sales price of tangible personal property sold through a coin-operated vending machine, other than closed-container soft drinks and tobacco.
North Dakota N.D. Cent. Code § 57-39.2-03.3 (2002)
  • Gross receipts from the sale of tangible personal property through a coin-operated vending machine costing 15¢ or less are exempt.
Pennsylvania Pa. Stat. Ann. tit. 72, § 7204(29) (West 2002)
  • Exempts all vended sales of candy and gum.
Texas Tex. Tax Code Ann. § 151.305. (West 2002)
  • The following tangible personal property sold through a coin-operated bulk vending machine for 50¢ or less is exempt:
    1. Food or candy, other than beverages;
    2. Chewing gum; or
    3. Toys and other items designed primarily to be used or played with by children.
Utah Utah Code Ann. § 59-12-104(3) (2002)
  • Sales of food, beverage and dairy products from vending machines are exempt if the proceeds of each sale do not exceed $1 and the vendor or operator of the vending machine reports an amount equal to 150% of the cost of items as goods consumed.
Vermont Vt. Stat. Ann. tit. 32, § 9202(15)(D) (2002)


Vt. Stat. Ann. tit. 32, § 9202(15)(A) (2002)
  • Any food or beverage sold from a vending machine is not taxable as long as the vending machine is not on the premises of a restaurant.
  • A restaurant is an establishment from which food or beverage of the type for immediate consumption is sold or for which a charge is made, including a cafe', cafeteria, dining room, diner, lunch counter, snack bar, private or social club, bar, tavern, street vendor or person engaged in the business of catering.

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