Are dietary/nutritional supplements like Coenzyme Q10, glucosamine, spirulina, amino acids, and various herbal and vitamin products exempt from Texas sales tax?

Plain-English summary

A supplement retailer asked the Comptroller for a straight taxability read on a long, specific list of vitamin, herbal, and nutritional products it sells. The Comptroller's answer covers every item on the list with a single, simple conclusion: all of them are exempt from Texas sales tax, effective April 1, 2000.

The full list, as itemized in the letter: Coenzyme Q10; MSM; glucosamine sulfate; combination herb/vitamin/mineral mixtures marketed for specific conditions (diabetic tea extract, Floressence dried herbs and tea, menopausal creams/foams with herbs/vitamins/minerals); capsule or powder forms of spirulina, wheat grass, chlorella, blue-green algae, alfalfa, and barley grass; aloe vera in gel, capsule, or liquid form; lecithin (granules, capsules, liquid); garlic capsules; acidophilus products (capsules, powder, liquid); enzymes; colostrum (capsules or powders); a range of plant-derived nutritional oils in capsule or liquid form (flax, pumpkin seed, wheat germ, evening primrose, borage, black currant seed oil, DHA, EPA, salmon oil, shark oil); bee pollen, royal jelly, and propolis; hormones such as DHEA, melatonin, and pregnenolone; and amino acids.

The letter doesn't cite a specific statute or rule number, but the uniform April 1, 2000 effective date across this entire category strongly suggests a specific legislative or rule change extending Texas's food/dietary-item exemption to this class of nutritional supplements around that date.

What this means for you

Health food stores, supplement retailers, and vitamin shops

If your product falls into any of the categories on this list -- CoQ10, glucosamine, algae/grass-based powders, plant oils, bee products, hormone supplements, amino acids, or similar herb/vitamin/mineral combination products -- this letter is useful, contemporaneous confirmation that Texas has treated these as exempt since April 1, 2000.

Accountants and tax professionals classifying nutritional products

This letter functions as a practical reference checklist for a broad swath of the dietary-supplement category. If your client sells a product not explicitly named here, don't assume exemption automatically extends to it -- confirm current treatment, since this list reflects one 2001 letter's specific enumeration rather than a codified catch-all category name.

Common questions

Q: Are all vitamins and supplements exempt from Texas sales tax?
A: This letter confirms exemption for the specific ~15 categories listed (CoQ10, MSM, glucosamine, various herbs, algae/grass powders, aloe vera, lecithin, garlic, acidophilus, enzymes, colostrum, plant oils, bee products, certain hormones, and amino acids), effective April 1, 2000 -- but doesn't purport to cover every conceivable supplement product.

Q: When did this exemption take effect?
A: April 1, 2000, per this letter.

Q: Does this letter bind the Comptroller for other supplement retailers?
A: No -- this is an informal 2001 letter responding to one taxpayer's specific product list, not a modern Private Letter Ruling or General Information Letter, and it cannot be relied on by anyone else, though its list of exempt items is useful reference information.

Citations and references

No statutes or rules were cited by section number in this letter; it confirms exempt status for a specific enumerated list of dietary/nutritional supplement products effective April 1, 2000.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200108426L

Original ruling text

August 13, 2001

FAX **

Dear **:

Thank you for your recent letter regarding your business and Texas sales tax.

You asked about the taxability of the following items:

1. Coenzyme Q10

2. MSM

3. Glucosamine Sulfate

4. Combination herbs and vitamin/mineral mixtures for specific conditions such
   as:

Diabetic tea extract
Floressence dried herbs
Floressence Tea
Menopausal creams and foams containing herbs, vitamins and minerals

5. Capsules or powder form of:

Spirulina
Wheat grass
Chlorella
Blue green algae
Alfalfa
Barley grass

6. Aloe vera- gel, capsule, liquid

7. Lecithin- granules, capsules, liquid

8. Garlic capsules

9. Acidophilus products- capsules, powder, liquid

10. Enzymes

11. Colostrum- capsules or powders

12. Nutritional oils in capsule or liquid form from plants:

Flax oil
Pumpkin seed oil
Wheat germ oil
Evening primrose oil
Borage oil
Black currant seed oil
DHA
EPA
Salmon oil
Shark oil

13. Bee pollen, royal jelly, propolis

14. Hormones such as DHEA, malatonin, pregnanalone

15. Amino acids

All of the products listed above are exempt from Texas sales tax effective
April 1, 2000.

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