Are Kool-Aid Kool-Pumps, popsicles, snow cones, and individually sold ice cream novelties subject to Texas sales tax?

Plain-English summary

A taxpayer asked the Texas Comptroller whether several frozen and drink-mix items sold at retail were taxable. The Comptroller's answer: all of them are taxable.

Specifically, the letter holds that:

• The Kool-Aid Kool-Pump "is not considered a food product" and is taxable whether sold individually or in a box of six (as shown on its label).
• Popsicles, snow cones, and individually sold ice cream sundries are also taxable.

The Comptroller pointed the taxpayer to Rule 3.293 (Food; Food Products - Meals; Food Service) and two general-guidance publications ("Tax Facts: Ready-To-Eat Food" and "What is taxable at grocery and convenience stores?") for further reference, but the letter itself doesn't walk through the rule's reasoning — it simply states the taxable outcome for each item.

What this means for you

Grocery, convenience store, and concession operators

If you sell items like Kool-Aid Kool-Pumps, popsicles, snow cones, or individual ice cream novelties, this letter says the Comptroller treats them as taxable, not as exempt food products — regardless of whether they're sold one at a time or packaged in multiples (the letter specifically notes a box of six Kool-Pumps is still taxable). Don't assume a frozen treat is exempt just because it's cold or contains fruit-flavored drink mix.

Accountants and tax professionals

This is a short, fact-specific letter with no statutory analysis beyond a rule citation — it doesn't explain why these items fall outside the food exemption, only that the Comptroller classified them as taxable. Treat it as evidence of the Comptroller's position on these specific products in 1993, not as a full explanation of the food-exemption test. For a fuller picture, you'd want to consult Rule 3.293 and the referenced Comptroller publications directly.

Common questions

Q: Is a Kool-Aid Kool-Pump treated as a tax-exempt food item?
A: No. The Comptroller stated it "is not considered a food product and is taxable whether sold individually or in a box of six as shown on the label."

Q: Are popsicles and snow cones taxable in Texas?
A: According to this letter, yes — "Popsicles, snow cones and individually sold ice cream sundries are also taxable."

Q: Does packaging multiple Kool-Pumps together change the tax treatment?
A: No. The letter specifically addresses a box of six and says it remains taxable, the same as when sold individually.

Q: Can I rely on this letter for my own business?
A: Not directly. The letter itself says its opinion "is based on the facts presented" and that the outcome "could change" with additional or different facts. Under STAR's rules, a letter can only be the basis of a detrimental-reliance claim for the taxpayer it was issued to, and the document may no longer reflect current policy even though it isn't marked superseded.

Citations and references

Rules cited:

• Rule 3.293, Food; Food Products - Meals; Food Service

Other referenced publications (not full citations, mentioned as enclosures):

• "Tax Facts: Ready-To-Eat Food"
• "What is taxable at grocery and convenience stores?"

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9304100L

Original ruling text

April 14, 1993

Dear **:

Thank you for your recent letter concerning the taxability of Kool-Aid
Kool-Pumps.

The Kool-Aid Kool-Pump is not considered a food product and is taxable whether
sold individually or in a box of six as shown on the label. Popsicles, snow
cones and individually sold ice cream sundries are also taxable. I am enclosing
copies of Rule 3.293, Food; Food Products- Meals; Food Service, along with two
other publications, "Tax Facts: Ready-To-Eat Food" and "What is taxable at
grocery and convenience stores?", for your reference.

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

If you have any questions, please don't hesitate to write the Tax
Administration Division or call one of our tax specialist toll free at
1-800-252-5555.

Sincerely,

Joan Hale
Tax Administration Division