Texas – Exemption for Snack Foods

SALT Report 2946 – The Texas Comptroller issued a notice regarding the change in taxability for certain snack items. Effective September 1, 2013 the following snack foods are exempt from sales tax:

  • Breakfast bars, granola bars, nutrition bars, protein bars, sports bars, or yogurt bars, unless 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 vending machines or in individual-sized portions are taxable regardless of where they are sold; or if eating facilities are provided by the seller. Also, the exemption does not apply to sales of candy, gum, and soft drinks as they are not considered snack foods and are taxable regardless of the portion size.

For purposes of this 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.

For Further Information

Texas Comptroller of Public Accounts – Release