Ezel / Tax Rulings / TX
TX 8703L0799B12 Sales and/or Use Tax (State,Local,MTA) 1987-03-03

Were LactAid tablets subject to Texas sales tax when they performed the same function and were marketed the same way as exempt LactAid drops?

Short answer: No. Because the tablets performed the same function and were marketed the same way as LactAid drops that Texas had previously exempted, the tablets were also exempt.

Apply this to your situation

This page answers the general question as of 1987. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1987
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 1987 Texas Comptroller letter applies to LactAid tablets represented as performing the same function and being marketed the same way as previously exempt LactAid drops. Product formulations, labeling, classifications, and sales-tax rules may have changed. Verify current treatment of the specific product sold and applicable local taxes. STAR documents may no longer represent current policy even when not marked superseded. Identities are redacted. This summary is informational only and is not legal or tax advice.
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 Texas Comptroller said LactAid tablets were exempt from sales tax. The letter relied on the facts that Texas had previously exempted LactAid drops and that the tablets performed the same function and were marketed the same way as the drops.

What this means for you

The conclusion was product- and fact-specific. It did not announce an exemption for every enzyme or dietary product; it extended the prior treatment of LactAid drops to a tablet version represented as functionally and commercially the same.

Common questions

Were LactAid tablets taxable? No.

Why were they exempt? The tablets performed the same function and were marketed the same way as LactAid drops that Texas had already exempted.

Did the letter address every lactase or enzyme product? No. It addressed the described LactAid tablets.

Citations and references

  • The letter cited no numbered statute or Comptroller rule.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller March 3, 1987

Dear ***:

Thank you for your phone call on February 26, 1987, concerning tax on
LactAid
in tablet form.

In the past we exempted LactAid drops from taxation. I understand the
tablets perform the same function as the drops and are marketed the same
as
the drops. LactAid tablets will also be exempt from sales tax.

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 me at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write me at the Tax Administration Division.

Sincerely,
Adina Whittemore
Tax Policy Section
Tax Administration Division

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