Ezel / Tax Rulings / TX
TX 8609L0754A07 Sales and/or Use Tax (State,Local,MTA) 1986-09-16

Were 'Smoky Canyon Pouch foods' taxable when the sales materials presumed heating before consumption?

Short answer: No. Because the pouches were presumed to be heated before eating—even by being left in the sun—the Comptroller said the food was not sold for immediate consumption and was not taxable.

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This page answers the general question as of 1986. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1986
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The product's sales information presumed that “Smoky Canyon Pouch foods” would be heated before consumption, even if the heating consisted of leaving a pouch in the sun.

On that stated fact, the Comptroller concluded that the food was not sold for immediate consumption and therefore was not taxable.

Common questions

Were the pouch foods taxable? No.

Why not? The sales materials presumed heating before consumption, so the product was not sold for immediate consumption.

Did heating have to use a stove or other appliance? No. The letter included leaving the pouch in the sun as heating.

Citations and references

  • 34 Tex. Admin. Code Rule 3.293 was enclosed with the letter.

Source

Original ruling text

September 16, 1986

Dear ***:

Thank you for your recent question about the taxability of "Smoky Canyon
Pouch foods".

The sales information you provided "presumes" that the pouches will be
heated, even if by leaving them out in the sun, before consumption.
Therefore, the food is not sold for immediate consumption and is not
taxable.

I am enclosing Rule 3.293 for your reference.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

If you have any questions or need more information, please call us at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write us at the Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division

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