Are 'Hollywood 48-Hour Miracle Diet' and 'Hollywood Daily Miracle Diet' weight-loss products subject to Texas sales tax?

Plain-English summary

A company asked whether two specific weight-loss diet products it sold — the "Hollywood 48-Hour Miracle Diet" and the "Hollywood Daily Miracle Diet" — were subject to Texas sales tax.

The Comptroller's answer was short and direct: neither product is subject to Texas sales tax. The letter itself doesn't walk through a detailed statutory analysis, but the Comptroller's own official subject line for this letter in the STAR system flags the products as falling within the over-the-counter drugs and dietary supplements exemption that became effective April 1, 2000 — Texas exempted OTC drugs and dietary supplements from sales tax starting on that date, and these named diet products were treated as qualifying.

What this means for you

Retailers and sellers of weight-loss and dietary supplement products

Products marketed as diet aids or weight-loss supplements can qualify for Texas's OTC drug/dietary supplement exemption (effective since April 1, 2000), even without an extensive ingredient-by-ingredient analysis in the ruling itself — this letter shows the Comptroller applying that exemption to specific named commercial products.

Accountants and tax professionals

Because this letter doesn't cite a specific statute in its body, rely on the STAR system's own subject-line categorization ("Exempt 4/1/2000") as the best available grounding for why these products were found nontaxable — consistent with Texas's broader OTC drug/dietary supplement exemption that took effect that date.

Common questions

Q: Are all weight loss and diet products exempt from Texas sales tax?
A: This letter answers only for the two specific named products; other diet or weight-loss products would need their own analysis, though many dietary supplements and OTC drugs are exempt as a general category since April 1, 2000.

Q: What changed on April 1, 2000?
A: Texas's over-the-counter drug and dietary supplement sales tax exemption took effect on that date, per the Comptroller's own subject-line note on this letter.

Q: Can another retailer selling similar diet products rely on this letter?
A: No. It answers specifically for these two named products; a retailer selling a different product should confirm its own product qualifies as an exempt OTC drug or dietary supplement.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200106328L

Original ruling text

June 14, 2001

Dear **:

Thank you for your recent letter regarding items sold by your company and Texas
sales tax.

You stated that your company sells the following items and asked if they are
subject to Texas sales tax:

1. Hollywood 48-Hour Miracle Diet

2. Hollywood Daily Miracle Diet

Response: Neither the Hollywood 48-Hour Miracle Diet nor the Hollywood Daily
Miracle Diet is subject to Texas sales tax.

This opinion is based on the facts presented. Additional or different facts
may yield different results.

You may call me toll free 1-800-531-5441, extension 5-9787, if you have any
questions or need more information. The direct line is 512/305-9787. You may
also write to Tax Policy Division, Comptroller of Public Accounts.

Sincerely,

Philip Knisely
Tax Policy Division