Overview
Texas regulates vending machines through a combination of state sales tax requirements, coin-operated machine occupation taxes, and local health permits for food vending. The state requires annual machine registration with visible decals, sales tax permits, and compliance with the 2017 FDA Food Code for food vending operations.
Home rule cities in Texas may impose additional requirements beyond state regulations. HB 2127 (effective September 1, 2023) limits local regulations that conflict with state law.
Business Registration
Business registration is required for vending operators in Texas.
Registration Agency
Registration Types
- LLC Formation ($300 filing fee)
- Corporation Formation ($300 filing fee)
- Partnership Registration ($200 filing fee)
- Foreign Entity Registration (varies)
- DBA/Assumed Name (filed at county level)
Business entities must maintain a registered agent and office in Texas. Foreign entities operating in Texas must register before conducting business. DBA filings are handled at the county level with varying requirements.
Sales Tax
Tax Application
- General sales tax applies to vending: Yes
- Food tax variation: Same as general
- Local rates possible: Yes
- Resale certificate required: Yes
- Filing frequency: monthly or quarterly (determined after permit approval)
Vending operators must collect 6.25% state sales tax plus up to 2% local sales tax. Each vending location requires a separate sales tax permit. Remote seller rules may apply for operators with machines in multiple jurisdictions.
Registration
Forms: AP-201 (Sales Tax Application), 01-339 (Resale Certificate)
Vending Operator License
Vending operator license is not required in Texas.
Machine Registration
Machine registration is required in Texas.
Per-machine fee: $60
Decal/tag required: Yes
Renewal: annual (due November 30)
Health Permit & Food Code
Health permits are required for:
- Machines dispensing potentially hazardous foods (TCS)
- Micro markets
- Fresh food vending
Agency: Texas Department of State Health Services
Food Code: 2017 FDA Model Food Code (adopted August 2021)
Inspections: Every 6 months
Micro Markets
Micro markets are recognized in state code.
Permit required: Yes
Specific Requirements
- 24-hour monitoring system required
- Designed for closed/secured facilities
- TCS foods must have health switches for malfunction protection
- Classified as low-risk retail food establishment
- Implementation rules effective October 11, 2015
Product Restrictions
Restricted Products
- Alcohol: Effectively prohibited due to age verification requirements, trained staff requirements, and liability for selling to minors. No explicit vending machine regulations found.
- Tobacco: Machines must be inaccessible to customers (behind counter). Age 21+ requirement (18+ for military with ID). Employee must retrieve products. Special decal required.
- CBD/Hemp: Consumable Hemp Product License required ($258 annual). Retail registration required. Strong consumer protections enforced by DSHS and Texas Department of Agriculture.
- Age Verification: Federal ID required for tobacco purchases by anyone appearing 30 or younger. Lockout devices must make machines truly inaccessible, not just locked.
Placement Rules
Schools
Federal Smart Snacks nutrition standards apply to all competitive foods sold on campus during school day. Administered by Texas Department of Agriculture under USDA programs. Final rule effective July 29, 2016.
Public Buildings
Must comply with procurement rules for state and local government facilities. May require vendor registration and competitive bidding for contracts.
Private Property
Property owner permission required. Subject to local zoning and business regulations. Commercial location required for coin-operated machine tax permits.
ADA & Accessibility
Minimum 3 feet wide accessible route required. Maximum 5 lbf force for push-activated controls. Operable parts must be within accessible reach ranges. Readily achievable barrier removal may be required for existing installations.
Electrical & Fire Code
Must comply with local building and fire codes. Commercial electrical requirements apply. Local permits may be required for electrical connections.
Local Permits
Texas has home rule, meaning local jurisdictions can impose additional requirements.
Typical Local Requirements
- City business license
- Health department permit for food vending
- Sidewalk vending permit (if applicable)
- Amusement device permit
- CBD concession license (downtown areas)
Example Localities
Houston
Requires permit for transient/temporary vendors. $10,000 surety bond required. Coin-Operated Amusement Machine Decals required. Enforces cigarette vending machine ordinance.
Austin
Maximum 3 vendor permits per person/company. Size limit 4' x 5'. Minimum 20 feet between vending locations. Requires 16 feet wide sidewalk. Online portal at myhealthdepartment.com/APH/login.
San Antonio
Occupational Tax Decal required for all coin-operated machines. Registration at 100 W. Houston St. Metro Health handles permit fees.
Penalties & Enforcement
Common Violations
- Operating without required occupation tax decal
- Missing or expired sales tax permit
- Tobacco vending machine accessibility violations
- Food safety violations (temperature control, expired products)
- Failure to display required permits
- Late renewal of annual permits
Penalties
- Tobacco violations: $1,000 (first), $2,000 (second), $3,000 (third) within 24 months
- Late filing penalties for tax returns
- Citations for operating without permits
- Suspension or revocation of food permits
- Civil penalties up to $10,000 per violation for certain infractions
Key Contacts
Texas Department of State Health Services
Phone: (512) 834-6650
Texas Secretary of State - Business Filings
Phone: (512) 463-5555
Texas Department of Agriculture (School Vending)
Phone: 1-800-TELL-TDA
Frequently Asked Questions
Do I need a separate sales tax permit for each vending machine location in Texas?
Yes, Texas requires a separate sales tax permit for each place of business where you have vending machines. Each location is considered a separate place of business for sales tax purposes. You'll need to file Form AP-201 for each location.
What is the annual cost to register a vending machine in Texas?
Each vending machine requires an occupation tax permit that costs $60 annually. The permit must be renewed by November 30 each year, and a decal must be displayed on each machine. Use Form AP-141 for additional machines.
Are micro markets regulated differently than traditional vending machines in Texas?
Yes, micro markets (self-service food markets) are specifically regulated as low-risk retail food establishments in Texas. They require a food establishment permit ($258), 24-hour monitoring, and must be in secured facilities. Rules have been in effect since October 11, 2015.
Can I sell tobacco products through vending machines in Texas?
Tobacco vending machines are heavily restricted in Texas. Machines must be completely inaccessible to customers (typically behind a counter), require employee assistance for purchases, need special decals, and sales are limited to ages 21+ (18+ for military with valid ID). Simple lockout devices are not sufficient.
Do I need a food handler's license to operate food vending machines in Texas?
Yes, if your machines dispense potentially hazardous foods (TCS foods), you need a Certified Food Manager and all food handlers must obtain certification within 60 days of employment. The food establishment permit costs $258 annually.
What are the Smart Snacks requirements for school vending in Texas?
All vending machines in Texas schools must comply with federal Smart Snacks nutrition standards for competitive foods sold during the school day. These standards set limits on calories, sodium, fat, and sugar content. The Texas Department of Agriculture administers these USDA requirements.
Do major Texas cities have additional vending requirements?
Yes, Texas home rule cities can impose additional requirements. For example, Austin limits vendors to 3 permits and requires 20 feet between machines. Houston requires a $10,000 surety bond for transient vendors. San Antonio requires occupational tax decals. Always check with local authorities.
Is there a statewide vending operator license required in Texas?
No, Texas does not require a specific vending operator license at the state level. The Texas Department of Licensing and Regulation (TDLR) does not regulate vending machine operators. However, you do need business registration, sales tax permits, and machine occupation tax permits.
What are the penalties for tobacco vending violations in Texas?
Penalties increased under Senate Bill 248 with a 24-month lookback period: First violation - $1,000; Second violation - $2,000; Third violation - $3,000. Common violations include lockout devices that don't make machines truly inaccessible. Report violations to 800-531-5441.
Can I sell CBD or hemp products in vending machines in Texas?
Yes, but you must obtain a Consumable Hemp Product License ($258 annual fee) and complete retail registration. Texas has strong consumer protection requirements for hemp products. The DSHS regulates manufacturing and retail while the Texas Department of Agriculture oversees growing and harvesting.
Sources
- Texas Comptroller - Coin-Operated Machine Tax
- Texas Comptroller - Sales Tax Information
- Texas DSHS - Retail Food Establishments
- Texas Secretary of State - How to Do Business in Texas
- Texas DSHS - Self-Service Food Market FAQs
- Texas Comptroller - Tobacco FAQ and Regulations
- Texas Department of Agriculture - Smart Snacks
- City of Austin - Right of Way Permits for Vendors
- City of Houston - Business Licensing
- City of San Antonio - Amusement and Coin-Operated Machines