Were cartons of 18 fully cooked, hard-boiled, dyed Easter eggs sold in grocery stores taxable in Texas?

Plain-English summary

The Texas Comptroller said the described Easter eggs were not taxable. The product consisted of 18 fully cooked, hard-boiled, dyed eggs packaged like ordinary eggs in a carton with cutout sides, sealed in plastic wrap, and sold only by the carton in grocery stores.

Some of the stores had sit-down eating areas, but the letter still gave a nontaxable result for the described cartons.

What this means for you

The conclusion is tied to the exact product and sales format. The eggs were packaged and sold as a full grocery carton rather than individually. The short letter does not supply a broader test for other cooked egg products.

Common questions

Were the cartons of Easter eggs taxable? No.

Were the eggs raw? No. They were fully cooked, hard-boiled, and dyed.

Were individual eggs sold separately? No.

Did store seating change the result? Not for the facts in this letter; some stores had sit-down eating areas and the cartons were still treated as nontaxable.

Citations and references

• No statute or administrative rule is cited in the letter.
• The product description—18 cooked and dyed eggs in a sealed carton—is the complete stated basis for the conclusion.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8704L0808D09

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller April 13, 1987

Dear ***:

This is to confirm my telephone response to your request for a ruling on
the
taxability of Easter eggs.

The Easter eggs, which you described as follows, are not taxable.

Pilgrim's Pride 18 Eggs - Rainbow's Eggs Fully Cooked

These eggs come in a carton of 18, just like regular eggs. However, the
eggs have been hard-boiled and dyed for Easter. The sides of the carton
are cut out in a way so that the eggs are visible to the customer and
the carton is sealed with plastic wrap. These eggs are not sold indivi-
dually. We sell these eggs in our grocery stores. Some stores have sit
down eating areas.

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

If you have any questions or need more information, please call me at
1-800-252-5555 toll free -from anywhere in Texas. The regular number is
512/463-4600. You may write me at the Tax Administration Division.

Sincerely,
Julie Pesl
Tax Policy Section
Tax Administration Division