re: Anyone own vending machines?

5 month bump. Googled "Vending Machine tigerdroppings" and this thread came up. I was interested into getting into this type of business at a slow pace.

Not sure if you live in Arkansas Hawgeye but what direction would be best....

quote:

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A taxpayer is given 3 options to manage their vending operations in Arkansas. All vending machines must display an annually issued vending device decal, no matter which option is chosen.

Option 1 involves the payment of sales tax directly to the supplier of all merchandise that will be sold through the taxpayer’s vending machines. Food sold through a vending machine can qualify for taxation at the Reduced Food Tax rate (see Rule 2007-3). No Sales/Use Tax permit is required if Option 1 is chosen.

After the opening of a Vending account, fiscal year decals are issued and placed on vending machines by the taxpayer. Prior to the beginning of each new fiscal year, a decal order form is mailed out to all Vending accounts. There are no fees for the annual Option 1 decals.

Option 2 involves reporting/paying the 7% Wholesale Vending Tax (see Rule 1995-2) each month on the merchandise to be sold through the taxpayer’s vending machines. Merchandise is purchased tax free under the sale for resale exemption. A Sales/Use Tax Permit is required. The taxpayer is required to file a monthly ET-1 Excise Tax Report and pay the appropriate tax.

After the opening of a Vending account, fiscal year decals are requested, issued, and placed on vending machines by the taxpayer. Prior to the beginning of each fiscal year, a decal order form is mailed out to all Vending accounts. There are no fees for the annual Option 2 decals.

Option 3 involves exempting vending merchandise purchases from tax under the sale for resale exemption. A Sales/Use Tax Permit is required. The taxpayer is required to file a monthly ET-1 Excise Tax Report.

After opening of a Vending account, fiscal year decals are purchased, issued, and placed on vending machines by the taxpayer. The vending machine operator purchases Option 3 decals based on various factors – manual verses electric vending equipment, value of the vended goods, and bulk verses individually vended goods. Prior to the beginning of each new fiscal year, a decal order form is mailed out to all Vending accounts. Decal costs are shown below.

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