5 Tips for Managing Sales Tax Related to Hurricane Harvey Repairs

Posted by Mary Thomas on Oct 26, 2017 3:51:42 PM

iStock-585505056.jpgAs construction companies and contractors work to repair the damage caused by Hurricane Harvey, they need to know that there are sales tax exemptions available for projects in designated disaster areas.  Here are some things you need to be aware of:

  1. Labor charges on commercial, repair, remodeling projects in designated disaster areas are exempt from Texas sales and use tax.
  2. Labor charges related to the repair of certain items damaged in a designated disaster area are also exempt from Texas sales and use tax.
  3. To obtain the labor exemptions, you must have a separated contract, as well as other documentation.
  4. Sales tax is not due on charges to clear trees. But, if you clear trees and haul away the debris, the entire charge may become taxable.
  5. Sales tax is not due on items purchased with Salvation Army, FEMA and Red Cross debit cards/ vouchers.  However, retailers have different documentation requires depending on which debit card/ voucher was used.

For more information on sales tax exemptions tied to Hurricane Harvey and projects in designated disaster areas, register for our class on Friday, November 3rd: Texas Sales and Use Tax Exemptions in a Designated Disaster Area.

Topics: Sales Tax

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