Texas – Change in Taxability of Snack Items

SALT Report 2809 – The Texas Comptroller issued a reminder that effective September 1, 2013, snack foods will be exempt from sales tax, unless they are sold through a vending machine or in individual-sized portions.

The exemption for snack foods applies to:

  • Breakfast bars, granola bars, nutrition bars, protein bars, sports bars or yogurt bars, unless they are labeled and marketed as candy,
  • Snack mix and trail mix,
  • Nuts, unless candy-coated,
  • Popcorn, and
  • Chips, crackers, or hard pretzels

However, snack foods sold through a vending machine or in an individual-sized portion will remain taxable regardless of where they are sold, even if the seller provides an eating area.

For purposes of the exemption an individual-sized portion is one that is labeled as having not more than one serving. Or, if the package does not specify servings, it contains less than 2.5 ounces. Additionally, candy, gum, and soft drinks are not considered snack foods and are taxable regardless of the portion size.

For Further Information

Texas State Legislature – Senate Bill 1151

Texas Tax Code Section 151.314 – Food and Food Products

SALT Report 2580 – Texas Exemption for Certain Snack Items