200805098L



May 21, 2008

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Dear **************,

Thank you for your Tax Help inquiry regarding the taxability of sunscreen. I 
apologize for the delay in this response.  

Over-the-counter (OTC) drugs and medicines were exempted from sales tax on 
April 1, 2000.  In 2007, legislation further defined the exemption for OTC 
drugs and medicines. Effective September 1, 2007, Tax Code Section 151.313 (a) 
(3) provides an exemption for over the counter drugs or medicines that are 
required to be labeled with a "Drug Facts" panel in accordance with regulations 
of the federal Food and Drug Administration (FDA).  If an over the counter item 
is required by the FDA to be labeled with a “Drug Facts” panel, then it is 
exempt from sales tax.  

With the changes in the statute, items that contain a drug facts panel are not 
necessarily exempt.  Again, the statutory language states that an exemption 
only applies to an OTC product if it is required by the FDA to be labeled with 
a drug facts panel.  According to the FDA, sunscreens are not required at this 
time to be labeled with a drug facts panel; however, some sunscreen packaging 
does contain a drug facts panel.  Because sunscreen is not required by the FDA 
to contain a drug facts panel, effective September 1, 2007, sunscreen is 
taxable even if the packaging contains a drug facts panel.  

The entire text of the Tax Code, a complete set of rules, and a wealth of other 
information can be found on our Window on State Government Web site by going to 
http://www.window.state.tx.us/taxinfo/sales/. 

You may also wish to utilize our State Tax Automated Research (STAR) system, 
which provides access to numerous letter rulings, policy decisions, hearings 
and other documents on this subject as well as other subjects related to Texas 
taxes.  This site may be found at http://cpastar2.cpa.state.tx.us/index.html. 

If you need more information, please e-mail tax.help@cpa.state.tx.us, or call 
toll-free (800) 531-5441.

This opinion is based on the information presented.  Other information, though 
similar, may provide a different result.

Our goal is to provide you with prompt, professional service.  Please take a 
moment to complete our on-line survey at 
http://aixtcp.cpa.state.tx.us/surveys/tpsurv2/index.html 

Sincerely,


Melissa Brogan
Tax Policy Division - Sales Tax Section
Texas Comptroller of Public Accounts



From: ************** 
Sent: Tuesday, April 29, 2008 3:03 PM
To: Tax Help
Subject: sun screen

is sun screen taxable?


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ACCESSION NUMBER: 200805098L
SUPERSEDED: N
DOCUMENT TYPE: L
DATE: 05/21/2008
TAX TYPE: SALES