Ezel / Tax Rulings / TX
TX 8703L0801D02 Sales and/or Use Tax (State,Local,MTA) 1987-03-11

How did Texas require a supplier to handle sales tax on prepackaged food sold through mobile vendors?

Short answer: Food sold ready for immediate consumption from a vehicle was taxable. The supplier was told to collect on its vendor price plus 20%, unless it sold to retailers and obtained resale certificates.

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 then-current Rule 3.293(d) to a supplier's prepackaged-food sales through mobile vendors. The markup method, prepared-food treatment, and resale-certificate rules may have changed. Verify current sales-tax, food-service, marketplace, permit, and local-tax rules. STAR documents may no longer represent current policy even when not marked superseded.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 all food products sold ready for immediate consumption from pushcarts, motor vehicles, or other vehicles were taxable.

Under Rule 3.293(d), the supplier was told to collect and remit tax using its price to the mobile vendor plus a 20% markup. If the supplier instead sold to retailers, it was to obtain completed resale certificates.

What this means for you

The letter treated the tax base differently depending on the buyer's role. Sales through mobile vendors used the stated markup method; sales to retailers could be made for resale if the supplier obtained the required certificate.

Common questions

Was ready-to-eat food sold from a vehicle taxable? Yes.

What amount did the supplier use to calculate tax? Its price to the mobile vendor plus a 20% markup under the rule then in effect.

What if the buyer was a retailer? The supplier was told to obtain a completed resale certificate.

Citations and references

  • Comptroller Rule 3.293(d) — cited for the supplier's collection and 20% markup method.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller March 11, 1987

Dear ***:

Thank you for your letter concerning tax on prepackaged products sold to
mobile vendors.

All food products sold ready for immediate consumption from pushcarts,
motor
vehicles or any other form of vehicle are subject to tax.

Please note under Rule 3.293(d), you should collect and remit tax on all
sales
to mobile vendors based on your price to the vendor plus a 20% markup.

If you sell to retailers, you should obtain a completed resale
certificate.

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

Please feel free to contact me if you have additional questions. You may
write me, call toll free 1-800-252-5555 from anywhere in Texas or phone
512/463-4600.

Sincerely,
Adina Whittemore
Tax Policy Section
Tax Administration Division

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