By: Murphy H.B. No. 4054       A BILL TO BE ENTITLED   AN ACT       relating to the application of sales and use taxes to certain food   items.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 151.314, Tax Code, is amended by   amending Subsections (b), (c-2), and (c-3) and adding Subsection   (b-2) 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; bakery items; or any   combination of the above.          (b-2)  For purposes of this section:                (1)  "Bakery" means a retail location that primarily   sells bakery items from a display case or counter, predominantly   for consumption off the premises.                (2)  "Bakery items" means bread, rolls, buns, biscuits,   bagels, croissants, pastries, doughnuts, Danish, cakes, tortes,   pies, tarts, muffins, bars, cookies, tortillas, and similar items.          (c-2)  The exemption provided by Subsection (a) does not   include the following prepared food:                (1)  except as provided by Subsection (c-3)(1), food,   food products, and drinks, including meals, milk and milk products,   fruit and fruit products, sandwiches, salads, processed meats and   seafoods, vegetable juice, and ice cream in cones or small cups,   served, prepared, or sold ready for immediate consumption by   restaurants, lunch counters, cafeterias, delis, vending machines,   hotels, or like places of business or sold ready for immediate   consumption from pushcarts, motor vehicles, or any other form of   vehicle;                (2)  except as provided by Subsection (c-3), food sold   in a heated state or heated by the seller; or                (3)  two or more food ingredients mixed or combined by   the seller for sale as a single item, including items that are sold   in an unheated state by weight or volume as a single item, but not   including food that is only cut, repackaged, or pasteurized by the   seller.          (c-3)  The exemption provided by Subsection (a) includes:                (1)  bakery items sold by a bakery, regardless of   whether heated by the consumer or seller [without plates or other   eating utensils, including bread, rolls, buns, biscuits, bagels,   croissants, pastries, doughnuts, Danish, cakes, tortes, pies,   tarts, muffins, bars, cookies, and tortillas]; and                (2)  eggs, fish, meat, and poultry, and foods   containing these raw animal foods, that require cooking by the   consumer as recommended by the Food and Drug Administration in   Chapter 3, Section 401.11 of its Food Code to prevent food-borne   illness and any other food that requires cooking by the consumer   before the food is edible.          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, 2017.