Texas Tax Code - Section 151.314. Food And Food Products
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Texas Laws > Tax Code > Texas Tax Code - Section 151.314. Food And Food Products
§ 151.314. FOOD AND FOOD PRODUCTS. (a) Food products for
human consumption are exempted from the taxes imposed by this
chapter.
(b) "Food products" shall include, except as otherwise
provided herein, but shall not be limited to cereals and cereal
products; milk and milk products, including ice cream;
oleomargarine; meat and meat products; poultry and poultry
products; fish and fish products; eggs and egg products;
vegetables and vegetable products; fruit and fruit products;
spices, condiments, and salt; sugar and sugar products; coffee and
coffee substitutes; tea; cocoa products; or any combination of
the above.
(c) "Food products" shall not include:
(1) drugs, medicines, tonics, vitamins, dietary
supplements, and medicinal preparations in any form;
(2) carbonated and noncarbonated packaged soft
drinks, which are nonalcoholic beverages that contain natural or
artificial sweeteners;
(3) ice; or
(4) candy.
(c-1) For purposes of this section, diluted juice that is
more than 50 percent vegetable or fruit juice by volume is not
considered to be a soft drink.
(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, 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, but not
including food that is only cut, repackaged, or pasteurized by the
seller.
(c-3) The exemption provided by Subsection (a) includes:
(1) bakery items sold without plates or other eating
utensils, including bread, rolls, buns, biscuits, bagels,
croissants, pastries, doughnuts, Danish, cakes, tortes, pies,
tarts, muffins, bars, cookies, and tortillas; and
(2) eggs, fish, meat, and poultry, and foods
containing these raw animal foods, that require cooking by the
consumer as recommended by the Food and Drug Administration in
Chapter 3, Section 401.11 of its Food Code to prevent food-borne
illness and any other food that requires cooking by the consumer
before the food is edible.
(d) Food products, meals, soft drinks, and candy for human
consumption are exempted from the taxes imposed by this chapter if:
(1) served by a public or private school, school
district, student organization, or parent-teacher association
under an agreement with the proper school authorities in an
elementary or secondary school during the regular school day or by a
parent-teacher association during a fund-raising sale the proceeds
of which do not benefit an individual;
(2) sold by a church or at a function of a church;
(3) served to a patient or inmate of a hospital or
other institution licensed by the state for the care of humans; or
(4) served to a permanent resident of a retirement
facility which provides permanent housing and residence to
individuals, a majority of whom are 60 years or older.
(e) Food products, candy, and soft drinks are exempted from
the taxes imposed by this chapter if sold at an exempt sale
qualifying under this subsection or if stored or used by the
purchaser of the item at the exempt sale. A sale is exempted under
this subsection if:
Text of subsec. (e)(1) as amended by Acts 2003, 78th Leg., ch. 1310,
§ 103
(1) the sale is made by a person under 19 years old who
is a member of a nonprofit organization devoted to the exclusive
purpose of education or religious or physical training or by a group
associated with a public or private elementary or secondary school;
Text of subsec. (e)(1) as amended by Acts 2003, 78th Leg., ch. 209,
§ 20
(1) the sale is made by a member of or volunteer for a
nonprofit organization devoted to the exclusive purpose of
education or religious or physical training or by a group
associated with a public or private elementary or secondary school;
(2) the sale is made as a part of a fund-raising drive
sponsored by the organization or group; and
(3) all net proceeds from the sale go to the
organization or group for its exclusive use.
(f) The exemption provided by this section does not apply to
the sale of food products through the use or operation of a vending
machine for which the receipts or sales prices are determined by
Section 151.007(d).
(g) The exemption provided by Subsection (d)(3) does not
apply to food products, meals, soft drinks, and candy sold to a
person confined in a correctional facility operated under the
authority or jurisdiction of or under contract with this state or a
political subdivision of the state.
Acts 1981, 67th Leg., p. 1562, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1983, 68th Leg., p. 1040, ch. 235, art. 7, §
4(a), eff. Sept. 1, 1983; Acts 1984, 68th Leg., 2nd C.S., ch. 31,
art. 7, § 20, eff. Oct. 2, 1984; Acts 1987, 70th Leg., ch. 704,
§ 1, eff. June 19, 1987; Acts 1987, 70th Leg., 2nd C.S., ch. 5,
art. 1, pt. 4, § 23; Acts 1989, 71st Leg., ch. 299, § 1, eff.
Oct. 1, 1989; Acts 1995, 74th Leg., ch. 79, § 1, eff. Oct. 1,
1995; Acts 1995, 74th Leg., ch. 1000, § 13, eff. Oct. 1, 1995;
Acts 2003, 78th Leg., ch. 209, § 20, eff. Oct. 1, 2003; Acts
2003, 78th Leg., ch. 1310, § 103, eff. Oct. 1, 2003.
Section: 151.310 151.3101 151.3105 151.311 151.3111 151.312 151.313 151.314 151.3141 151.315 151.316 151.3162 151.317 151.318 151.3181
Last modified: August 11, 2007
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