83R7630 ADM-F
By: Bohac H.B. No. 2504
A BILL TO BE ENTITLED
AN ACT
relating to sales and use tax treatment of certain snack items;
eliminating a tax exemption.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.314, Tax Code, is amended by
amending Subsection (b) and adding Subsections (b-1) and (h) to
read as follows:
(b) "Food products" shall include, except as otherwise
provided herein, but shall not be limited to cereals and cereal
products; milk and milk products, including ice cream;
oleomargarine; meat and meat products; poultry and poultry
products; fish and fish products; eggs and egg products;
vegetables and vegetable products; fruit and fruit products;
spices, condiments, and salt; sugar and sugar products; coffee and
coffee substitutes; tea; cocoa products; snack items; or any
combination of the above.
(b-1) For purposes of this section, "snack items" includes:
(1) breakfast bars, granola bars, nutrition bars,
sports bars, protein bars, or yogurt bars, unless labeled and
marketed as candy;
(2) snack mix or trail mix;
(3) nuts, unless candy-coated;
(4) popcorn; and
(5) chips, crackers, or pretzels.
(h) The exemption provided by Subsection (a) does not apply
to a snack item described by Subsection (b-1)(5) if the item is sold
in individual-sized portions. For purposes of this subsection, an
individual-sized portion is a portion that:
(1) is labeled as having not more than one serving; or
(2) contains less than three ounces, if the package
does not specify the number of servings.
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, 2013.