84R22952 ADM-F
 
  By: Bonnen of Brazoria H.B. No. 3484
 
  Substitute the following for H.B. No. 3484:
 
  By:  Bohac C.S.H.B. No. 3484
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the application of sales and use taxes to certain food
  items; adding a provision subject to a criminal penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 151.314, Tax Code, is amended by
  amending Subsections (b-1), (c-2), and (h) and adding Subsection
  (c-4) to read as follows:
         (b-1)  For purposes of this section, "snack items" means
  [includes]:
               (1)  breakfast bars, granola bars, nutrition bars,
  sports bars, protein bars, or yogurt bars, unless labeled and
  marketed as candy;
               (2)  snack mix or trail mix;
               (3)  nuts, but not including pine nuts or [unless]
  candy-coated nuts;
               (4)  popcorn; [and]
               (5)  chips, crackers, [or] hard pretzels, pork rinds,
  or corn nuts;
               (6)  sunflower seeds or pumpkin seeds;
               (7)  ice cream, sherbet, or frozen yogurt; and
               (8)  ice pops, juice pops, sorbet, or other frozen
  fruit items containing not more than 50 percent fruit juice by
  volume.
         (c-2)  The exemption provided by Subsection (a) does not
  include the following prepared food:
               (1)  food, food products, and drinks, including meals,
  milk and milk products, fruit and fruit products, sandwiches,
  salads, processed meats and seafoods, vegetable juice, and ice
  cream in cones or small cups, served, prepared, or sold ready for
  immediate consumption [in or] by restaurants, lunch counters,
  cafeterias, delis, vending machines, hotels, or like places of
  business or sold ready for immediate consumption from pushcarts,
  motor vehicles, or any other form of vehicle;
               (2)  food sold in a heated state or heated by the
  seller; or
               (3)  two or more food ingredients mixed or combined by
  the seller for sale as a single item, including items that are sold
  in an unheated state by weight or volume as a single item,
  regardless of where prepared, but not including food that is only
  cut, repackaged, or pasteurized by the seller.
         (c-4)  For purposes of Subdivision (c-2)(1), if a grocery
  store or convenience store contains a type of location listed in
  that subdivision, the store is considered a like place of business
  for purposes of that subdivision, but only in relation to items sold
  at that location.
         (h)  The exemption provided by Subsection (a) does not apply
  to a snack item if the item is sold through a vending machine or is
  sold in individual-sized portions.  For purposes of this
  subsection, an individual-sized portion is a portion that:
               (1)  is labeled as having not more than one serving; or
               (2)  contains less than 2.5 ounces[, if the package
  does not specify the number of servings].
         SECTION 2.  The change in law made by this Act does not
  affect tax liability accruing before the effective date of this
  Act. That liability continues in effect as if this Act had not been
  enacted, and the former law is continued in effect for the
  collection of taxes due and for civil and criminal enforcement of
  the liability for those taxes.
         SECTION 3.  This Act takes effect September 1, 2015.