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A BILL TO BE ENTITLED
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AN ACT
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relating to the application of sales and use taxes to certain food |
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items. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.314, Tax Code, is amended by |
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amending Subsections (b-1), (c-2), and (h) and adding Subsection |
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(c-4) to read as follows: |
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(b-1) For purposes of this section, "snack items" means |
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[includes]: |
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(1) breakfast bars, granola bars, nutrition bars, |
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sports bars, protein bars, or yogurt bars, unless labeled and |
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marketed as candy; |
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(2) snack mix or trail mix; |
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(3) nuts, but not including pine nuts or [unless] |
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candy-coated nuts; |
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(4) popcorn; [and] |
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(5) chips, crackers, [or] hard pretzels, pork rinds, |
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or corn nuts; |
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(6) sunflower seeds or pumpkin seeds; |
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(7) ice cream, sherbet, or frozen yogurt; and |
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(8) ice pops, juice pops, sorbet, or other frozen |
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fruit items containing not more than 50 percent fruit juice by |
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volume. |
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(c-2) The exemption provided by Subsection (a) does not |
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include the following prepared food: |
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(1) food, food products, and drinks, including meals, |
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milk and milk products, fruit and fruit products, sandwiches, |
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salads, processed meats and seafoods, vegetable juice, and ice |
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cream in cones or small cups, served, prepared, or sold ready for |
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immediate consumption [in or] by restaurants, lunch counters, |
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cafeterias, delis, vending machines, hotels, or like places of |
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business or sold ready for immediate consumption from pushcarts, |
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motor vehicles, or any other form of vehicle; |
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(2) food sold in a heated state or heated by the |
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seller; or |
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(3) two or more food ingredients mixed or combined by |
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the seller for sale as a single item, including items that are sold |
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in an unheated state by weight or volume as a single item, but not |
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including food that is only cut, repackaged, or pasteurized by the |
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seller. |
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(c-4) For purposes of Subdivision (c-2)(1), if a grocery |
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store or convenience store contains a type of location listed in |
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that subdivision, the store is considered a like place of business |
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for purposes of that subdivision, but only in relation to items sold |
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at that location. |
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(h) The exemption provided by Subsection (a) does not apply |
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to a snack item if the item is sold through a vending machine or is |
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sold in individual-sized portions. For purposes of this |
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subsection, an individual-sized portion is a portion that: |
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(1) is labeled as having not more than one serving; or |
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(2) contains less than 2.5 ounces[, if the package
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does not specify the number of servings]. |
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SECTION 2. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 3. This Act takes effect September 1, 2015. |
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