H.B. No. 4054
 
 
 
 
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.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4054 was passed by the House on May 3,
  2017, by the following vote:  Yeas 146, Nays 0, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 4054 on May 21, 2017, by the following vote:  Yeas 140, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 4054 was passed by the Senate, with
  amendments, on May 19, 2017, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor