Texas Comptroller offers Hurricane Harvey relief for state taxes
TAX ALERT |
On Aug. 25, 2017, the Texas Comptroller released an announcement providing that taxpayers in declared disaster areas affected by Hurricane Harvey may request postponement of state tax payments during recovery from storm-related losses. Businesses located in declared disaster areas may request up to a 90-day extension to file and pay certain monthly and quarterly state taxes. Extensions are granted on a case-by-case basis.
The Comptroller has also provided a reminder to taxpayers that Texas law exempts certain expenses from sales tax, including the following:
- The cost of labor to repair storm-damaged, nonresidential property, including office buildings and stores. Labor charges must be separately stated on the repair bill. Texas does not impose sales tax on labor for residential repairs.
- Services used to restore storm-damaged tangible personal property, including dry cleaning of clothing and draperies, rug and carpet cleaning, and appliance repairs regardless of whether the property is residential or nonresidential.
Taxpayers impacted by the disaster may contact the Comptroller’s assistance line at 1-800-252-5555 to request the extension. Taxpayers should also be aware that a number of Comptroller filed offices will be closed in the Houston area until at least mid-week.
In addition to the state tax extension, the Comptroller maintains a frequently asked questions website on declared natural disasters and emergencies tax help relating to hotel taxes and sales and use taxes. That guidance provides information on disaster-related exemptions and handling purchases with FEMA or Red Cross funds. Impacted taxpayer should consult both the Comptroller’s guidance and reach out to their Texas tax advisors with questions.