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Ezel / Tax Rulings / TX
TX 9010L1054A01 Sales and/or Use Tax (State,Local,MTA) 1990-10-23

Were pecan-cracking services and sales of smoked turkeys subject to Texas sales tax?

Short answer: Pecan cracking was not taxable. Smoked turkeys were not taxable unless sold ready for immediate consumption, and resale certificates could apply to resale purchases.

Apply this to your situation

This page answers the general question as of 1990. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1990
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The Comptroller said that cracking pecans was not subject to Texas sales tax.

Smoked turkeys were also not taxable unless they were sold ready for immediate consumption. Rule 3.293 supplied the standard for that condition. A buyer purchasing turkeys for resale could issue a resale certificate under Rule 3.285, as could the taxpayer's customers when they bought for resale.

What this means for you

The tax result for smoked turkey turned on how it was sold, not merely on the fact that it was smoked. The letter treated ready-for-immediate-consumption sales differently from other sales.

Common questions

Was pecan cracking taxable? No.

Were all smoked-turkey sales exempt? No. A smoked turkey sold ready for immediate consumption was taxable.

Could a purchaser buying turkeys for resale use a resale certificate? Yes.

Citations and references

  • Comptroller Rule 3.293 — ready-for-immediate-consumption food
  • Comptroller Rule 3.285 — resale certificates

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller October 23, 1990

Dear ***:

Thank you for your letter dated October 15, 1990, asking whether
cracking pecans and selling smoked turkeys are subject to Texas
sales tax.

Cracking pecans is not subject to Texas sales tax.

Smoked turkeys are not taxable unless they are sold ready forim-
mediate consumption. Please see the enclosed copy of Rule 3.293
for more information about what constitutes "ready for immediate
consumption."

If you are buying the turkeys for resale or if your customers are
buying the turkeys for resale, a resale certificate may be issued.
Please see the enclosed copy of Rule 3.285 for more information
about resale certificates.

These responses are based on the information provided in your let-
ter. If the facts change or if there are additional relevant facts,
the responses may change.

If I may be of further assistance, please do not hesitate to write
me or call me toll free at 1-800-252-5555, extension 34662.

Sincerely,
Jerry Oxford
Tax Correspondence

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