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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. Sections 151.314(c-2) and (c-3), Tax Code, are |
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amended to read as follows: |
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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) food, food products, and drinks, including meals, |
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milk and milk products, fruit and fruit products, sandwiches, |
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salads, processed meats and seafoods, vegetable juice, and ice |
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cream in cones or small cups, served, prepared, or sold ready for |
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immediate consumption by restaurants, lunch counters, cafeterias, |
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delis, vending machines, hotels, or like places of business or sold |
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ready for immediate consumption from pushcarts, motor vehicles, or |
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any other form of 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, regardless of whether the item is |
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heated by the consumer or seller [sold 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. |