Were salt, sodium bisulfate, and ice used by commercial fishing boats exempt from Texas sales tax?

Plain-English summary

The Comptroller said table or common salt was exempt as a food item without an exemption certificate. Other salts—including rock, ice-cream, grain, and Epsom salts—were taxable unless the purchaser supplied an exemption certificate supporting a separate exemption.

Sodium bisulfate used to preserve shrimp was taxable because the Comptroller found no basis to treat it as food for human consumption. Ice used by commercial fishing boats to store fish or shrimp, and ice used inside a package to preserve the catch during shipment to a customer, was exempt with a properly completed exemption certificate.

What this means for you

The letter treated each material separately. Product identity, use, and documentation all mattered; a general connection to commercial fishing did not make every preservative exempt.

Common questions

Was ordinary table salt exempt? Yes, without an exemption certificate.

Was sodium bisulfate exempt as a shrimp preservative? No.

Was ice used aboard a commercial fishing boat exempt? Yes, for storing the catch, with a properly completed exemption certificate.

Did the letter answer every proposed ice use? No. It declined to answer one question because the purchaser and claimed exemption were not identified.

Citations and references

• Comptroller Rule 3.293(a)(6)(A), concerning salt as a food product.
• Comptroller Rule 3.320, concerning ice and dry ice.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9008L1033C13

Original ruling text

August 7, 1990

Dear **:

Thank you for your letter dated July 21, 1990, concerning salt, sodium
bisulfate, and ice used by commercial fishing boats.

Table or common salt (sodium chloride) is exempt from sales tax as a food item.
Rule 3.293 on food and food products (copy enclosed) specifically exempts salt
in section (a)(6)(A). An exemption certificate is not required from the
purchaser. Other types of salt, including rock or ice cream salt, grain salt,
Epsom salts, etc., are taxable. An exemption certificate must be issued by a
purchaser claiming exemption from tax due on the purchase of one of these
salts.

The sodium bisulfate, used as a shrimp preservative according to your letter,
is taxable. I could not find any information about the substance to indicate
that it is a food product intended for human consumption.

Ice purchased for use by commercial fishing boats to store shrimp, fish, etc.,
is exempt. Ice used inside a crate or package to preserve the shrimp during
shipment to a customer is also exempt. Please refer to Rule 3.320 on ice and
dry ice. In order to claim one of the exemptions listed in the rule, the
purchaser must issue a properly completed exemption certificate to you.

I cannot provide a more definite answer to your question #4 since I don't know
who is purchasing the ice and which of the exemptions the purchaser is
claiming.

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 any additional questions. You may
write me, call toll free 1-800-252-5555 (ext. 3-4685) from anywhere in the
United States or phone 512/463-4685.

Sincerely,

Julie Pesl
Tax Correspondence