Texas Simplifies Sales Tax on Single-Sized Snacks
DALLAS, July 2, 2013 /PRNewswire/ -- Senate Bill 1151 ("SB 1151"), effective September 1, 2013, will simplify sales tax collection for convenience stores and other businesses that sell snacks in individual-sized servings. On September 1st, sales tax will be due on all sales of single-sized servings of chips; nuts; crackers; breakfast, granola, yogurt, and protein bars; and other snacks as provided below. Single-sized servings are packages labeled as one serving or packages that contain less than 2.5 ounces (if the package does not state servings). For sales tax purposes, taxable "snacks" are as follows:
- Breakfast bars, granola bars, nutrition bars, sports bars, protein bars, or yogurt bars (not labeled and marketed as candy);
- Snack mix or trail mix;
- Nuts (candy-coated nuts are taxable, regardless of size, unless purchased with food stamps);
- Popped popcorn; and
- Chips, crackers, or hard pretzels.
No tax is due on cartons or bags containing several single-sized servings of snacks. In addition, single-sized servings of other groceries are not taxable unless sold by a restaurant or business that provides tables and chairs.
Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. Headquartered in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a three-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 1,600 professionals and associates serves over 9,000 clients in 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at www.ryan.com.
Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
TECHNICAL INFORMATION CONTACT:
Susan Traylor Bittick