TABC and Coin Op Machines

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History & Background

The 21st Amendment to the US Constitution signaled the repeal of national prohibition in the 1930's, allowing each state to control the importation and use of alcoholic beverages within its boundaries. The Texas Alcoholic Beverage Commission (formerly the Texas Liquor Control Board) was created in 1935 and is the agency that regulates all phases of the alcoholic beverage industry in the State. The duties of the commission include regulating the sale, taxation, importation, manufacturing, transporting, and advertising of alcoholic beverages.

The Texas Alcoholic Beverage Code authorizes the Texas Alcoholic Beverage Commission to:

  • Grant, refuse, suspend or cancel permits and licenses in all phases of the alcoholic beverage industry;
  • Supervise, inspect and regulate the manufacturing, importation, exportation, transportation, sale, storage, distribution, and possession of alcoholic beverages;
  • Assess and collect fees and taxes;
  • Investigate for violations of the Alcoholic Beverage Code and assist in the prosecution of violators;
  • Seize illicit beverages;
  • Adopt standards of quality and approve labels and size of containers for all alcoholic beverages sold in Texas;
  • Pass rules to assist the agency in all of the above.

License and Permit Information

When applying for a new license or permit, your best resource is the local TABC office. They can walk you through the licensing process and answer any questions you might have. The TABC office serving Galveston County is located in the in Dickinson City Hall. Other contact information is on the TABC website.

Businesses will pay state fees and shortly after will receive a statement from us for Galveston County and, if appropriate, League City fees. These are each one-half of the State fee. Please note that beer licenses cannot be renewed earlier than 30 days before expiration.  

Please also note that recent legislation exempted businesses from the local TABC permit requirement IF THEY HOLD A FOOD ESTABLISHMENT PERMIT issued by the county health department (SB 577 passed in the 88th R Session).  We have already updated our system to note those existing businesses that are now exempt.  If unsure, please call our Accounting team at 409-766-2428.

The most current TABC fee schedule may be found here:  TABC Maximum Local Fees Effective 9.1.2021

Mailed payments should be addressed to:

Galveston County Tax Office (Attn TABC Services)
722 21st Street
Galveston, Texas 77550


TABC Informational Websites


Coin Operated Machine Services

If you own a for-profit vending machine, you are likely required to pay State and County Occupation tax each year. Owners of arcade or amusement equipment in Galveston County are required to pay a $15/year tax which is one-fourth of the State Occupations tax which is collected by the Comptroller of Public Accounts. Gas meters, stamp, food and beverage and cigarette vending machines are exempt as are some businesses such as those organized exclusively for religious, charitable, educational or benevolent purposes, and those organizations that lease, sell, or rent coin operated machines to others.

In 2007, GCTO designed a sticker that, although not legally required to be displayed, makes it much easier for authorities to determine whether machines are licensed and fees paid. We send out invoices in October each year to allow time for mail in renewals. All payments received by November 15th will receive new stickers prior to December 31st.

Stickers may also be obtained at the GCTO Galveston Branch located on the first floor of the Galveston County Courthouse, 722  21st Street in Galveston.

Please complete the Coin Op Permit Form to obtain stickers for machines. Each business location requires a completed form. Visit the websites below to obtain additional important information.

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