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Texas Disaster Recovery Labor Sales Tax Exempt


On April 5, 2012, Texas Governor, Rick Perry declared “…that the severe storms and tornadoes that occurred April 3, 2012, have caused a disaster in Dallas, Kaufman and Tarrant counties in the State of Texas.”

The state of disaster declaration enables taxpayers to “…claim an exemption on separately-stated charges for labor to repair or restore tangible or non-residential real property damaged within a disaster area.” However, materials used during the repair or restoration are taxable, even in a disaster area.

It is important to note that the equipment used to perform the repairs are not sales tax exempt and there is no time limit required. “Purchases made with FEMA debit cards or FEMA vouchers are exempt from Texas sales and use tax. Purchases made with Red Cross debit cards, Red Cross vouchers, or Salvation Army vouchers are exempt from Texas sales and use tax.”

Businesses who are affected may request an extension of up to 90 days to file tax returns.

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Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”