|
|
|
|
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 |