Disaster Relief Tax Programs

Sales Tax

The Governor of Texas or the President of the United States must declare an area a disaster. Taxpayers may claim an exemption on separately-stated charges for labor to repair or restore tangible or non-residential real property damaged within a disaster area. No time limit is required for claiming an exemption from tax on labor charges for repairs for damage caused by a declared disaster. Taxpayers may claim an exemption on labor charges for arborist services, such as cutting down or cutting up damaged or dead trees in a declared disaster area. 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.

Hotel Occupancy Tax

Guests who occupy a hotel room for 30 or more consecutive days are considered permanent residents and are exempt from the hotel tax.

All Taxes

Businesses affected by a declared disaster may, upon request, be granted an extension of 90 days to file tax returns. Extension requests due to disasters are handled on a case-by-case basis.

View frequently asked disaster relief questions. For additional information on general tax-related issues, contact the Comptroller’s Tax Assistance Division toll free at (800) 252-5555, or at (512) 463-3688.

Property Taxes

Residential property owners located in disaster areas may pay local property taxes in four equal installment payments due by Jan. 31, April 1, June 1 and Aug. 1. No penalty and interest are assessed on the installments. Collectors for local taxing units may, at their discretion, enter into installment agreements for payment of delinquent property taxes and may decide to do so for own-ers of property located in disaster areas.

For additional information regarding property tax options, contact the Comptroller’s Property Tax Division toll free at (800) 252-9121, or in Austin at (512) 305-9999.