Is the charge for labor to repair non-residential real property damaged in a disaster area taxable?
Usually repair and remodeling services performed on nonresidential real property are taxable. See Texas Administrative Code Rule 3.357. However, in a declared disaster area, purchasers may claim an exemption from sales tax on separately stated charges for labor to repair or restore nonresidential real property damaged by the disaster. The materials that are used to perform the repairs are taxable. To claim the exemption on the labor charge, the purchaser should give the repair contractor an exemption certificate. If the service provider charges a lump-sum charge, then that charge is taxable. However, the service provider may later separate the charge for materials. When the charge for labor is separately stated, the customer can then give the contractor a completed exemption certificate so that the service provider may refund the sales tax collected on the charge for labor. 3. Is the labor to repair personal property damaged in a disaster area taxable? Taxpayers may claim an exemption
