Bill Text: TX HB4054 | 2017-2018 | 85th Legislature | Introduced

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Bill Title: Relating to the application of sales and use taxes to certain food items.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2017-06-01 - Effective on 9/1/17 [HB4054 Detail]

Download: Texas-2017-HB4054-Introduced.html

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85R14822 ADM-F
By: Murphy H.B. No. 4054

A BILL TO BE ENTITLED
AN ACT
relating to the application of sales and use taxes to certain food
items.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 151.314(c-2) and (c-3), Tax Code, are
amended to read as follows:
(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 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) except as provided by Subsection (c-3), 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, regardless of whether the item is
heated by the consumer or seller [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.
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, 2017.