Ezel / Tax Rulings / TX
TX 9004L0997B04 Sales and/or Use Tax (State,Local,MTA) 1990-04-19

Was MLO Milk and Egg Protein taxable in Texas as a powdered drink mix or therapeutic product?

Short answer: No. The Comptroller's April 19 letter reversed its February 16 answer and concluded that MLO Milk and Egg Protein qualified as a nontaxable food product.

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This page answers the general question as of 1990. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1990
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 controlling April 19, 1990 letter concluded that MLO Milk and Egg Protein qualified as a food product and was not taxable.

That answer expressly reversed the attached February 16 letter, which had treated the product as taxable based on the 1987 change for powdered drink mixes and the rule for food marketed as therapeutic. After further Legal Services research, the Comptroller changed the result and apologized for the inconvenience.

Common questions

Which answer controls within this document? The later April 19 answer.

What did it conclude? MLO Milk and Egg Protein was a nontaxable food product.

Why does the source also say taxable? That is the superseded February response preserved as an attachment.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

April 19, 1990

Dear ***:

Last February you wrote us questioning whether MLO Milk and Egg
Protein was taxable. I notified you that it was taxable.

However, our Legal Services Division has recently researched this
area and decided that MLO Milk and Egg Protein does qualify as a
food product and is not taxable.

I'm sorry for any inconvenience this may have caused.

If you have any questions you may call or write Tax Correspondence.
You may call toll free 1-800-252-5555, or our regular number is
512/463-4600. My extension is 3-4658.

Sincerely,
Sherry Buckley
Tax Correspondence

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

February 16, 1990

Dear ***:

Your letter has been transferred to me for a response. You
questioned whether MLO Milk and Egg Protein is a taxable item.

MLO Milk and Egg Protein is taxable. Effective October 1, 1987,
the statute was amended and powdered drink mixes became taxable.

Also, food products that have substantial nutritional value but
are marketed, labeled, and promoted to the public as being
therapeutic are taxable.

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

If you have any questions you may call or write Tax
Correspondence. You may call toll free 1-800-252-5555, or our
regular number is 512/463-4600. My extension is 3-4658.

Sincerely,
Sherry Buckley
Tax Correspondence

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