Introduction
There is some uncertainty around whether cat food is taxable in Texas or not. This article provides an overview of the sales tax laws in Texas and how they apply to pet food, specifically cat food. We will examine the definitions around taxable goods, the exemptions that exist, and the specifics around purchasing cat food and having to pay sales tax on those purchases.
Definitions
Sales tax is a tax paid to a governing body (state or local) for the sale of certain goods and services. In Texas, the state sales tax rate is 6.25% of the purchase price, which is collected by the seller from the consumer at the point of sale.
Use tax refers to a type of tax levied on the storage, use, or consumption of a taxable item purchased from any retailer. Use tax prevents situations where an item is purchased out of state to avoid sales tax and then brought back for use in a higher-tax location.
Pet food refers to any commercial feed for domesticated animals and livestock. This includes dry and wet canned food, as well as treats and supplements. In Texas, pet food is generally considered taxable unless exemptions apply.
Sources:
https://comptroller.texas.gov/taxes/sales/
https://statutes.capitol.texas.gov/Docs/TX/htm/TX.151.htm
Texas Sales Tax Laws
The state of Texas has a 6.25% statewide sales tax rate. This is the base rate that applies to most transactions in the state. However, local jurisdictions like cities, counties, transit authorities, and special purpose districts can impose up to an additional 2% on top of the statewide rate, bringing the maximum possible sales tax rate to 8.25% (1).
For example, the sales tax rate in Austin is 8.25% – this includes the 6.25% state sales tax plus a 2% local sales tax imposed by the city (2). In Dallas, the rate is 8.25% thanks to a 1% city tax and a 1% transit authority tax on top of the state rate.
Sales tax applies to retail sales of most tangible personal property and some services in Texas. Common taxable items include clothing, furniture, electronics, jewelry, and more. Services like auto repair, landscaping, and pet grooming are also subject to sales tax (2).
Pet Food Taxability
In Texas, pet food is generally considered taxable. This is according to Texas Administrative Code Title 34 Part 1 Chapter 3 Rule 3.296 which states that “Feed purchased for an animal that might normally be kept as a pet is taxable. Pets normally include, but are not limited to, dogs, cats, rabbits, hamsters, and birds kept as household pets” (Texas Administrative Code Rule 3.296).
The Texas Comptroller’s office also confirms that pet food is taxable, stating “For example, flour, sugar, bread, milk, eggs, fruits, vegetables and similar groceries (food products) are not subject to Texas sales and use tax. … Pet food is taxable.” (Texas Comptroller).
Therefore, in general, purchases of pet food for cats, dogs, birds, fish, and other common household pets are subject to sales tax in Texas.
Cat Food Specifically
The tax status of cat food in Texas depends on who is purchasing the cat food and for what purpose. According to the Texas Comptroller’s office, pet food purchased for a household pet like a cat is generally considered taxable in Texas.
The Texas Administrative Code states that “Feed purchased for an animal that might normally be kept as a pet is taxable. Pets normally include, but are not limited to, dogs, cats, rabbits, hamsters, and birds kept for pleasure rather than utility.” [1]
Therefore, regular cat food purchased for a household pet cat at a grocery store or pet supply store would be subject to sales tax in Texas. The tax rate in most areas of Texas is 8.25% of the purchase price. There are some exemptions, such as for cat food purchased by certain tax-exempt organizations like animal shelters. But in general, cat food bought for household pet cats is considered a taxable purchase under Texas law.
Exemptions
There are some exemptions that apply to pet food sales tax in Texas. According to Texas Administrative Code Rule 3.296, feed purchased for an animal that might normally be kept as a pet is generally taxable. However, there are some exemptions for certain uses of pet food.
One exemption is for pet food used for agricultural purposes. The Texas Comptroller’s office states that pet food is exempt from sales tax when used exclusively on a farm or ranch to produce agricultural products for sale. So cat food purchased for use in raising cats on a farm or ranch would qualify for the agricultural exemption.
Another potential exemption is for pet food purchased with Supplemental Nutrition Assistance Program (SNAP) benefits, according to the Texas Comptroller’s office. So cat food purchased with SNAP benefits would be exempt from sales tax.
However, there does not appear to be a general exemption from sales tax for cat food purchased for household pets in Texas. Unless the cat food purchase qualifies for one of the exempt uses above, it would be subject to state and local sales tax in Texas.
Calculating Tax
The sales tax rate in Texas varies by city and county, ranging from 6.25% to 8.25%. To calculate the sales tax on cat food purchases in Texas:
1. Look up the sales tax rate for your city and county. This can be found on the Texas Comptroller website.
2. Multiply the cost of the cat food by the sales tax rate. For example, if you purchase $20 worth of cat food in Austin (8.25% sales tax rate):
$20 x 0.0825 = $1.65 sales tax
3. Add the sales tax amount to the subtotal to calculate your total payment. Following the example above, your total would be:
$20 + $1.65 = $21.65
So if you purchase $20 worth of cat food in Austin, you would owe $1.65 in sales tax, making your total payment $21.65.
Reporting Taxes
Retailers selling cat food in Texas are required to report sales tax collected to the Texas Comptroller of Public Accounts. This includes submitting regular sales tax returns and payments to the state.
Returns must be filed on a monthly, quarterly, or annual basis depending on the retailer’s total tax liability. Returns are due on the 20th day following the end of each reporting period. Payments must accompany sales tax returns.
Retailers must keep detailed records of their sales and taxes collected. The Texas Comptroller’s office may request to examine these records at any time. Proper record keeping is crucial to accurately reporting taxes.
Failure to properly collect, report, and remit sales tax on cat food sales may result in penalties, interest charges, and audits. Retailers who intentionally attempt to evade taxes may face criminal prosecution.
To stay compliant, retailers selling cat food should familiarize themselves with all reporting requirements, file returns on time, keep meticulous records, and collect and remit the proper amount of sales tax.
Penalties
The state of Texas assesses penalties for not properly paying sales tax on time. According to the Texas Comptroller’s website, penalties are calculated as follows:
If you pay the tax 1-30 days late, you will be assessed a 5% penalty (https://comptroller.texas.gov/taxes/sales/).
If you pay the tax over 30 days late, you will be assessed a 10% penalty (https://comptroller.texas.gov/taxes/file-pay/penalties.php).
In addition, a $50 penalty may be charged for each report filed after the due date (https://comptroller.texas.gov/taxes/waivers/faq.php).
These penalties are meant to encourage timely and accurate payment of sales tax. Failing to pay on time or pay the full amount owed can result in accumulating fees and interest charges.
Conclusion
In summary, cat food purchases in Texas are generally subject to sales tax, with a few exemptions. The state sales tax rate is 6.25%, though local jurisdictions may add up to 2% extra. Grocery and drug stores must collect tax on all pet food sales. Purchases directly from a veterinarian as part of an animal’s medical care may be exempt. The tax is calculated based on the total purchase amount including any delivery fees. Retailers are required to file regular sales tax returns and remit taxes collected to the state. Failure to properly collect, report, or pay sales tax can result in penalties and interest. When purchasing cat food in Texas, consumers should expect to pay sales tax at the time of sale.