Ezel / Tax Rulings / TX
TX 9007L1033B09 Sales and/or Use Tax (State,Local,MTA) 1990-07-11

Were a caterer's sales of raw meat and unprepared fruit and vegetables taxable, and what happened when the caterer prepared the food?

Short answer: Raw, unprepared food sold by the caterer was not taxable. If the caterer prepared the food, the entire customer charge was taxable.

Apply this to your situation

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Raw, unprepared food sold by a caterer—including raw meat and unprepared fruit and vegetables—was not subject to tax.

When the caterer prepared the food, the total charge was taxable.

Common questions

Raw meat taxable? No, when sold unprepared.

Unprepared fruit and vegetables taxable? No.

Prepared catering charge taxable? Yes, in full.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

BOB BULLOCK
Comptroller

July 11, 1990

VIA FAX

Dear **:

In our phone conversation you asked about the taxability of raw
food. The sale of raw, unprepared food such as raw meat and un-
prepared fruit and vegetables by a caterer is not subject to tax.
If the caterer prepares the food, the total charge is taxable.

This opinion is based on the facts you presented. Other facts,
though similar, may yield different results.

If you have questions or need more information, please call our
toll-free number 1 -800- 531- 5441. My direct line number is
463-4680 (FAX (512) 475-0900]. You may write to me in care of
Taxability Section.

Sincerely,
Al Van Allen
Taxability Section
Legal Services Division

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