Texas Disaster Recovery Labor Sales Tax Exempt
- Apr 30, 2012 | Susan McLain
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.