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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), (c-2), and (c-3) and adding Subsection |
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(b-2) to read as follows: |
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(b) "Food products" shall include, except as otherwise |
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provided herein, but shall not be limited to cereals and cereal |
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products; milk and milk products, including ice cream; |
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oleomargarine; meat and meat products; poultry and poultry |
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products; fish and fish products; eggs and egg products; vegetables |
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and vegetable products; fruit and fruit products; spices, |
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condiments, and salt; sugar and sugar products; coffee and coffee |
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substitutes; tea; cocoa products; snack items; bakery items; or any |
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combination of the above. |
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(b-2) For purposes of this section: |
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(1) "Bakery" means a retail location that primarily |
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sells bakery items from a display case or counter, predominantly |
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for consumption off the premises. |
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(2) "Bakery items" means bread, rolls, buns, biscuits, |
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bagels, croissants, pastries, doughnuts, Danish, cakes, tortes, |
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pies, tarts, muffins, bars, cookies, tortillas, and similar items. |
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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) except as provided by Subsection (c-3)(1), food, |
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food products, and drinks, including meals, milk and milk products, |
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fruit and fruit products, sandwiches, salads, processed meats and |
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seafoods, vegetable juice, and ice cream in cones or small cups, |
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served, prepared, or sold ready for immediate consumption by |
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restaurants, lunch counters, cafeterias, delis, vending machines, |
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hotels, or like places of business or sold ready for immediate |
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consumption from pushcarts, motor vehicles, or any other form of |
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vehicle; |
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(2) except as provided by Subsection (c-3), food sold |
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in a heated state or heated by the 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-3) The exemption provided by Subsection (a) includes: |
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(1) bakery items sold by a bakery, regardless of |
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whether heated by the consumer or seller [without plates or other
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eating utensils, including bread, rolls, buns, biscuits, bagels,
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croissants, pastries, doughnuts, Danish, cakes, tortes, pies,
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tarts, muffins, bars, cookies, and tortillas]; and |
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(2) eggs, fish, meat, and poultry, and foods |
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containing these raw animal foods, that require cooking by the |
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consumer as recommended by the Food and Drug Administration in |
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Chapter 3, Section 401.11 of its Food Code to prevent food-borne |
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illness and any other food that requires cooking by the consumer |
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before the food is edible. |
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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, 2017. |