Change in Taxability of Snack Items

TEXAS – Snack foods will be exempt from sales tax, starting Sep. 1, 2013, unless sold through a vending machine or in individual-sized portions.  If sold through vending machine or individual-sized portions, they will be taxable, no matter where they are sold.

Snack foods included are:

• 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.

The following are not considered snack foods for sales tax purposes and are taxable regardless the portion size:

• Candy;
• Gum; and
• Soft drinks.

Individual-size packages are labeled as one serving or less than 2.05 ounces (if package does not state servings.)