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TEXAS SALES TAX EXEMPTION FOR LABOR TO REPAIR STORM DAMAGE

Posted by Admin Posted on Sept 20 2017

Texas Sales Tax Exemption for Labor to Repair Storm Damage

EEPB would like to remind our Clients who may have experienced Harvey related storm damage that there is an exemption from Texas sales tax on labor to repair damage to tangible personal property and commercial real property that was damaged as a result of Harvey. There is no exemption for Texas sales tax on the purchase of tangible personal property such as equipment or construction materials used to repair or reconstruct the
damaged property. However, if the equipment or construction materials qualify for some other Texas sales tax exemption such as the manufacturing exemption, these exemptions can still be used.


In order to claim the exemption from Texas sales tax on labor charges for storm damage repairs, the Texas Comptroller’s Office has established certain requirements which must be met. The exemption requirements are as follows:

  • The tangible personal property or the commercial real property being repaired must have been located in the area that was declared a disaster area by either the Governor of Texas or the President of the United States; and,
  • The amount of the labor charge must be separately stated from any charges for tangible personal property on the invoice, contract, or similar documents provided by the service provider.

 

The owner of the damaged tangible personal property or commercial real property must provide the service provider with a signed exemption certificate in order to claim the exemption on the service charges. Any contracts or invoices which contain a lump sum charge to include all materials and labor will not qualify for the exemption.

Should you have any questions regarding the Texas sales tax exemption for labor charges to repair storm damages, please call Carl Kluge at 713-622-0016, ext. 7742, or contact him by e-mail at carl.kluge@eepb.com.

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