Texas caramel corn.

A sales tax must be collected on the sale of caramel corn in Texas because the caramel corn is candy. Likewise, a sales tax should be collected on the sale of any portion of food in a heated state. Therefore, the sale of warm kettle corn is subject to Texas sales tax. Sales tax should also be collected if individual servings of non heated food are served by a vendor who also provides tables and chairs or if the food is sold in an area where eating facilities are provided. (Texas Controller of Public Accounts, No. 200302747L, letter signed February 14, 2003)

Posted on June 15, 2003