Hurricane Beryl Tax Extensions and Tax Exemptions in Texas

Texas Acting Governor Dan Patrick issued a disaster proclamation on July 5 that was subsequently amended on July 6, 2024, declaring a state of disaster in specific counties. The proclamation states that Hurricane Beryl presents an imminent threat of widespread and severe property damage, potential injury, loss of life, and damage due to extensive flooding, life-threatening storm surge, strong winds, and heavy rainfall.

Taxpayers that believe their ability to timely file Texas taxes this month will be impacted by Hurricane Beryl may request an extension  from the Comptroller’s office by calling 800-252-5555 or by sending an email to ExtensionRequests@cpa.texas.gov and providing the following information:

• Taxpayer name
• Taxpayer number
• Tax type(s) for which the extension is requested
• Affected filing period(s)
• Name, phone number and email address of the person making the request
• Reason for request

Tax exemptions for real property repair and clean-up labor

Nonresidential real property repair labor is generally subject to Texas sales and use tax, however, these services are exempt when performed in a certified disaster area as part of disaster recovery. For the services to be exempt, labor must be separately stated from materials. Lump sum nonresidential real property services are still subject to Texas sales and use tax.

Real property services such as lawn maintenance and tree removal are also generally subject to Texas sales and use tax, for both commercial and residential properties. Hauling away debris is still subject to tax but services to cut damaged branches and damaged trees are not subject to Texas sales tax. It is important to differentiate services for a successful exemption.