Senate Bill 1151 (“SB 1151”), effective September 1, 2013, will simplify sales tax collection for convenience stores and other businesses that sell snacks in individual-sized servings. On September 1st, sales tax will be due on all sales of single-sized servings of chips; nuts; crackers; breakfast, granola, yogurt, and protein bars; and other snacks as provided below. Single-sized servings are packages labeled as one serving or packages that contain less than 2.5 ounces (if the package does not state servings). For sales tax purposes, taxable “snacks” are as follows:
- Breakfast bars, granola bars, nutrition bars, sports bars, protein bars, or yogurt bars (not labeled and marketed as candy);
- Snack mix or trail mix;
- Nuts (candy-coated nuts are taxable, regardless of size, unless purchased with food stamps);
- Popped popcorn; and
- Chips, crackers, or hard pretzels.
No tax is due on cartons or bags containing several single-sized servings of snacks. In addition, single-sized servings of other groceries are not taxable unless sold by a restaurant or business that provides tables and chairs.
TECHNICAL INFORMATION CONTACT:
Susan Traylor Bittick
Principal
Ryan
512.476.0022
susan.bittick@ryan.com