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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Comm_Sub.html

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By: Murphy (Senate Sponsor - Bettencourt) H.B. No. 4054
(In the Senate - Received from the House May 3, 2017;
May 5, 2017, read first time and referred to Committee on Finance;
May 12, 2017, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 10, Nays 0; May 12, 2017,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 4054 By: Nelson

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. Section 151.314, Tax Code, is amended by adding
Subsection (b-2) and amending Subsections (c-2) and (c-3) to read
as follows:
(b-2) For purposes of this section:
(1) "Bakery" means a retail location that primarily
sells bakery items from a display case or counter, predominantly
for consumption off the premises.
(2) "Bakery items" means bread, rolls, buns, biscuits,
bagels, croissants, pastries, doughnuts, Danish, cakes, tortes,
pies, tarts, muffins, bars, cookies, tortillas, and similar items.
(c-2) The exemption provided by Subsection (a) does not
include the following prepared food:
(1) except as provided by Subsection (c-3)(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)(1), 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 by a bakery, regardless of
whether the items are:
(A) heated by the consumer or seller; or
(B) served with plates or other eating utensils;
(2) bakery items sold at a retail location other than a
bakery 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
(3) [(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.
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