So chips aren't taxed in taxes?
Sometimes yes sometimes no. As usual with any tax it's complicated.
If the chips sold are meant for consumption on the premises, like a snack area, then they're taxable, but if they are meant to be consumed off the premises they're considered food and are exempt. If the merchant has a snack area in the store it becomes murky as to the intent of the consumer and thus the taxability of said chips.
Or maybe it's the other way around.
AARRRRRRGGG, now my head hurts.
Anyway, needless to say, Walmart is going down, big time.