TX 9109L1131G05 Sales and/or Use Tax (State,Local,MTA) 1991-09-20

Are frozen or partly frozen foods sold through vending machines exempt because they are not ready for immediate consumption?

Short answer: No. Food sold through vending machines was taxable under Rule 3.293(g)(1) even while frozen or partly frozen, and providing customer heating facilities did not change that result.

Apply this to your situation

This page answers the general question as of 1991. Ezel answers yours, under current Texas tax law, with citations.

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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 Comptroller said food sold through a vending machine was subject to tax under the formula in Rule 3.293(g)(1), even if the food was frozen or partly frozen when sold.

The result was the same when the vending-machine operator supplied facilities customers could use to heat the food. Frozen condition did not make the vending-machine sale exempt as food not ready for immediate consumption.

What this means for you

For the transactions addressed in this letter, a vending-machine operator could not avoid the rule's taxable-sales formula by keeping food frozen or by leaving heating to the customer.

Common questions

Was frozen vending-machine food exempt? No.

Did partial freezing change the answer? No. The letter treated frozen and partly frozen food the same way.

Did customer-accessible heating facilities matter? No. The Comptroller gave the same taxable answer.

Citations and references

34 Tex. Admin. Code Rule 3.293(g)(1) — formula cited for food sales through vending machines

Source

STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
Opinion: https://star.comptroller.texas.gov/view/9109L1131G05

Original ruling text

September 20, 1991

Dear **:

Thank you for your recent letter to Ms. Glover on behalf of the
ASSOCIATION A. I have been asked to reply. Your questions are
restated with response below.

Question: Are frozen or partially frozen foods sold through a
Vending machine considered not ready for immediate consumption
and therefore exempt from sales tax?

Response: No, food sales through vending machines are subject to
tax based on the formula in Rule 3.293 (g) (1) even if the food
is maintained in a frozen state.

Question: Are frozen or partially frozen foods sold through a
vending machine taxable when the vending machine operator has
provided food heating facilities for the customers use?

Response: Same as above.

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 or write.
You may reach me by calling toll free, (800) 531-5441. My direct line
number is (512) 463-4680. The number for FAX transmissions is (512)
475-0900. You may write to me in care of Tax Administration Division.

Sincerely,

Al Van Allen
Tax Administration Division

Get today's answer for your situation

You just read a 1991 ruling on this question. Ezel checks current Texas tax law and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.