Bang for your Buck: The fine line between what is taxed - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Bang for your Buck: The fine line between what is taxed and what is not at the grocery store

If you've ever wondered why your grocery bill is higher than expected, there may be some specific food items driving up your total cost.

It's a common belief that all food in the grocery store is not taxed, but there are some exceptions and some gray areas that you may not know about.

For example, prepared foods are taxed in Texas. But, if you purchase a cake or some donuts from the bakery, those items are not taxed. 

Generally, prepackaged, single size snacks, like granola bars, or a small bag of chips will be taxed. But, a box of granola bars, or a large bag of chips are not. 

The taxing decision is made by the State.

"Everybody's got to eat. You need to have some really basic food," said Economics Professor Neil Meredith. 

"Generally food is not taxed, but there are some specifics," the Ph.D. WTAMU Professor added. 

Things like sodas, and candy are taxed. 

"It's viewed as more of a convenience item so they will place sales tax on it," he explained.

But it's harder to explain other items, like ice cream desserts.

Ice cream sold in small half pints are taxed. But ice cream sold in a pint or larger are not. 

The reason behind this is based solely on what the government says is taxable and what is not. 

Something Meredith says is always a challenge when it comes to the rules. 

"That's the punch line... the devils in the details," he said. 

For more information on what items are taxed, click on the link below:

http://www.window.state.tx.us/taxinfo/taxpubs/tx96_280.pdf

 

  • Today's Local News HeadlinesToday's Local NewsMore>>

  • 'Spring Cleaning Drive' helps two area non-profits

    'Spring Cleaning Drive' helps two area non-profits

    Sunday, March 26 2017 4:54 PM EDT2017-03-26 20:54:27 GMT
    Source: KFDASource: KFDA

    Martha's Home and Amarillo Habitat for Humanity got some much-needed help this weekend, while others did a little spring cleaning.    

    Martha's Home and Amarillo Habitat for Humanity got some much-needed help this weekend, while others did a little spring cleaning.    

  • Building fire at Public Steel, no injuries reported

    Building fire at Public Steel, no injuries reported

    Sunday, March 26 2017 12:43 AM EDT2017-03-26 04:43:35 GMT
    Source: KFDASource: KFDA

    Amarillo police and the Amarillo Fire Department worked a building fire at Public Steel.

    Amarillo police and the Amarillo Fire Department worked a building fire at Public Steel.

  • Career fair brings opportunities for young job seekers

    Career fair brings opportunities for young job seekers

    Saturday, March 25 2017 9:29 PM EDT2017-03-26 01:29:17 GMT
    Hundreds of job seekers came dressed for success in hopes of joining teams of local companies in the area. Multiple employment opportunities were available from all levels of employment, including full and part-time positions in technical, health care, management, customer service and many others. According to the Bureau of Labor Statistics, the Texas unemployment rate is at 4.9 % and in Amarillo the percentage of unemployment is at 3.4 %.  Workforce solutions Panhandle said t...
    Hundreds of job seekers came dressed for success in hopes of joining teams of local companies in the area. Multiple employment opportunities were available from all levels of employment, including full and part-time positions in technical, health care, management, customer service and many others. According to the Bureau of Labor Statistics, the Texas unemployment rate is at 4.9 % and in Amarillo the percentage of unemployment is at 3.4 %.  Workforce solutions Panhandle said t...
Powered by Frankly