Ezel / Tax Rulings / TX
TX 8806L0882B01 Sales and/or Use Tax (State,Local,MTA) 1988-06-16

Could labor to restore, repair, or remodel a building listed in the National Register of Historic Places be purchased tax-free in Texas?

Short answer: Yes. Texas said a person or organization restoring, repairing, or remodeling a building listed in the National Register of Historic Places could give the contractor an exemption certificate for the labor. Materials used in the work remained taxable.

Apply this to your situation

This page answers the general question as of 1988. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1988
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

A building listed in the National Register of Historic Places was undergoing renovation. Texas said labor to restore, repair, or remodel a National Register building could be purchased tax-free by giving the contractor an exemption certificate.

The exemption described in the letter covered labor only. The materials remained taxable.

What this means for you

Owners of registered historic buildings

Under this 1988 letter, qualifying National Register status supported an exemption certificate for restoration, repair, or remodeling labor. Keep documentation of the listing and separately track taxable materials.

Contractors

The customer could furnish an exemption certificate instead of paying tax on qualifying labor. The contractor should not treat the construction materials as exempt under this letter.

Common questions

Q: Is restoration labor exempt?
A: Yes, for the National Register building described.

Q: Are repair and remodeling labor also covered?
A: Yes. The letter lists restoring, repairing, and remodeling.

Q: Are materials exempt?
A: No. The letter says materials are taxable.

Q: Does the letter cite a numbered provision?
A: No. Confirm the current exemption rules before relying on this historical result.

Citations and references

The letter states the labor exemption but cites no specific Tax Code section or Comptroller rule by number.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TX 78774

BOB BULLOCK
Comptroller June 16, 1988

Dear *:

Thank you for your letter concerning the **'s building located at

in *****, which is listed in the National Register of
Historic Places, and is currently undergoing renovation.

Persons and organizations, who are restoring, repairing, or remodeling
buildings which are listed in the National Register of Historic Places,
may
purchase the labor to perform those functions tax free. The purchaser
may
give the contractor an exemption certificate in lieu of tax on the labor
to
restore the building. The materials are taxable.

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

If you have any questions or need more information, please call our
toll-free
number 1-800-531-5441. The regular number is 512/463-4600. You may
write me
at Tax Correspondence, Comptroller of Public Accounts.

Sincerely,
Julie Pesl
Tax Correspondence

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