Section 9-437. COIN-OPERATED DEVICES

 

437.1Gross receipts from the sale of tangible personal property through vending machines and other automatic devices are subject to the tax.

 

437.2Gross receipts from the sales of food and drink, as described in § 114(a)(1) of the Act and defined in § 107 of the Act, shall be taxable at the rate of six percent (6%), including the sale of soft drinks, coffee, milk, candy, ice cream, popcorn, and similar items.

 

437.3Gross receipts from all other sales through vending machines of taxable tangible personal property shall be taxable at the rate of six percent (6%), including (but not limited to) the sale of cigarettes, cigars, perfumes, photographs, handkerchiefs, and various hygienic products.

 

437.4Persons using vending machines and other automatic devices for the purpose of selling tangible personal property shall obtain a certificate of registration, as provided in § 146 of the Act, to engage in the business of selling taxable tangible personal property; must file sales and use tax returns; and must pay the sales tax to the District on the entire gross receipts from sales made through these machines.

 

437.5One (1) certificate of registration shall be sufficient for all machines operated by a single vendor.

 

437.6All persons to whom § 437.4 applies shall keep adequate and complete records showing the location of each machine owned or operated, the serial number of each machine, purchases and inventories of merchandise bought for sale through each machine, and the gross receipts derived from the operation of each machine during each monthly period.

 

437.7Persons operating machines through which non-taxable services are dispensed (such as washing machines, dryers, weighing scales, juke boxes, pinball machines, rides, and similar services) shall not be required to obtain a certificate of registration.

 

437.8The sale or purchase of vending machines and other automatic devices, regardless of the items or services dispensed, and the sale or purchase of parts and equipment for those machines or devices, shall be subject to the sales tax or use tax, whichever is applicable.

 

source

Commissioners' Order 54-1415, 1 DCR 4 (July 19, 1954); as amended by Commissioners' Order 56-890 effective May 9, 19 1956, 2 DCR 304 (May 21, 1956); by Commissioners' Order 62-41 effective March 20, 1962, 8 DCR 225 (April 2, 1962); by Commissioners' Order 66-1674 effective October 27, 1966, 13 DCR 101 (November 7, 1966); the Third Amendment to the Revenue Act of 1975 Act, D.C. Law 1-61, 22 DCR 4383, 4384 (February 12, 1976); and by Final Rulemaking published at 32 DCR 1776, 1777 (March 29, 1985).