After the Governor declared Tarrant County a disaster area, is labor to repair damaged property in the area exempt from Texas sales tax?

Plain-English summary

Following a Comptroller news release about tax relief for Tarrant County, someone wrote in asking about the disaster relief after Governor Bush declared Tarrant County a disaster area. The Comptroller confirmed: labor to restore real or tangible personal property damaged within the disaster area by the condition that caused the disaster declaration is exempt from sales tax, under Tex. Tax Code § 151.350. This letter specifically confirms the exemption extends to damaged real and tangible personal property belonging to electric and gas utilities within the disaster area.

What this means for you

Property owners, contractors, and utilities in a Governor-declared disaster area

Repair labor to restore property damaged by the specific condition that triggered the disaster declaration is exempt from sales tax under § 151.350 — this letter confirms that exemption reaches electric and gas utility property specifically, not just typical residential/commercial real property.

Electric and gas utility companies

If your equipment or facilities are damaged by a condition that led to a Governor's disaster declaration in the affected county, repair labor on that damaged property is exempt from sales tax, per this letter's confirmation.

Accountants and tax professionals

A useful example applying the general § 151.350 disaster-area repair-labor exemption specifically to utility-owned property, confirming it isn't limited to typical residential/commercial buildings.

Common questions

Q: Is repair labor on property damaged by a Governor-declared disaster exempt from sales tax?
A: Yes, under Tex. Tax Code § 151.350, as long as the damage was caused by the condition that led to the disaster declaration.

Q: Does this exemption cover electric and gas utility property?
A: Yes, this letter confirms the exemption applies to damaged real and tangible personal property belonging to electric and gas utilities within the disaster area.

Q: Can I rely on this letter for a different disaster declaration or property type?
A: No. This opinion is based on the facts presented; additional or different facts could change the answer.

Citations and references

Statutes:

• Tex. Tax Code § 151.350 (disaster area repair labor exemption)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200003153L

Original ruling text

March 30, 2000

Subject: Comptroller News Release 03/29/00 - Tax Relief to Tarrant

Dear **:

Thank you for your recent email concerning Tarrant County disaster relief.

Governor Bush declared Tarrant County a disaster area. The labor to restore
real or tangible personal property damaged within the area by the condition
that caused the area to be declared a disaster area is exempt from sales tax.
The exemption applies to damaged real and tangible personal property in the
disaster area belonging to electric and gas utilities. See Texas Tax Code
Section 151.350.

You may view or down load the sales tax law at and
then click on the following:

1. State Government
2. Texas Statutes
3. Tax Code
4. Chapter 151
5. Scroll down to the referenced statutory section

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

You may call me toll free 1-800-531-5441, extension 3-4683, if you have any
questions or need more information. You may write to Tax Policy Division,
Comptroller of Public Accounts, P.O. Box 13528, Austin, Texas 78711-3825. My
e-mail address is .

Sincerely,

Eddie C. Washington
Tax Policy Division