Were sales of Vietnamese pot-bellied pigs exempt as animals whose products ordinarily constitute food for human consumption?

Plain-English summary

The Comptroller concluded that sales of Vietnamese pot-bellied pigs were taxable whether the animals were sold as pets or for breeding.

Texas Tax Code § 151.316(2) exempted animal life whose products ordinarily constitute food for human consumption. The Comptroller consulted the head of the Swine Extension Program at Texas A&M University, who said Vietnamese pot-bellied pigs were not considered pork-producing animals and did not ordinarily constitute human food.

The letter did not decide whether the pigs were exotic livestock because the food-animal exemption still did not apply.

What this means for you

An animal's label as livestock or breeding stock did not decide this exemption. The letter focused on whether the animal ordinarily produced food for human consumption.

Common questions

Were pot-bellied pigs sold as pets taxable? Yes.

What if they were sold for breeding? The sale was still taxable.

Why did the food-animal exemption not apply? The pigs were not considered pork-producing animals that ordinarily constituted human food.

Citations and references

• Texas Tax Code § 151.316(2) — animal life whose products ordinarily constitute food for human consumption

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9104L1106D06

Original ruling text

April 24, 1991

Dear ***:

Thank you for your recent questions on the taxability of
Vietnamese Pot-Bellied Pigs.

Without delving into whether these animals are exotic livestock
or not, I can tell you that tax is due on their sale. As we
discussed, there was a question in my mind about their taxability
because Tax Code Sec. 151.316(2) exempts the sale of animal life the
products of which ordinarily constitute food for human
consumption. I wasn't sure if these animals "ordinarily"
constitute food for human consumption so I talked to the head of
the Swine Extension Program at Texas A & M University. He told
me that Vietnamese Pot-Bellied Pigs are not considered to be pork
producing animals and do not ordinarily constitute food for human
consumption.

Sales tax is due on the sale of Vietnamese Pot-Bellied Pigs
whether they are sold for pets or breeding.

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 512-
463-4680 (FAX (512) 475-0900). You may write to me in care of
Tax Administration Division.

Sincerely,

Al Van Allen
Tax Administration Division