Is labor to repair, remodel, restore, or renovate a building that is a Recorded Texas Historic Landmark, but not listed in the National Register of Historic Places, exempt from Texas sales tax?

Plain-English summary

A taxpayer wrote to the Texas Comptroller's Tax Administration Division asking about the taxability of labor to repair, remodel, restore, or renovate buildings that are Recorded Texas Historic Landmarks — a state-level designation — but that are not also listed in the National Register of Historic Places, a federal listing.

The Comptroller answered that 34 Tex. Admin. Code Rule 3.357(e)(4) exempts labor involved in remodeling, restoring, or repairing buildings listed in the National Register of Historic Places. The rule does not exempt that same kind of labor for buildings that are only Recorded Texas Historic Landmarks and are not listed in the National Register. In other words, the state landmark designation by itself does not qualify a building's restoration labor for the exemption — only National Register listing does.

The letter notes the opinion is based on the facts presented, and that additional or different facts could change the answer.

What this means for you

Owners of buildings with a Recorded Texas Historic Landmark designation

Don't assume that a state historic landmark designation alone makes your repair, remodeling, restoration, or renovation labor exempt from sales tax. Under Rule 3.357(e)(4), the exemption turns on whether the building is listed in the National Register of Historic Places — not on the Recorded Texas Historic Landmark designation.

Contractors performing restoration or renovation work

Before treating labor charges on a historic building as exempt, confirm the building's National Register status specifically. A building can carry the Recorded Texas Historic Landmark designation and still be taxable for labor purposes if it isn't also listed in the National Register.

Accountants and tax professionals

When evaluating the Rule 3.357(e)(4) labor exemption for historic building work, verify National Register of Historic Places listing directly — the Recorded Texas Historic Landmark designation is a distinct, state-level status and does not itself satisfy the rule.

Common questions

Q: Is labor to restore a Recorded Texas Historic Landmark automatically tax-exempt?
A: No. The exemption under Rule 3.357(e)(4) applies only to labor on buildings listed in the National Register of Historic Places. Recorded Texas Historic Landmark status alone does not qualify.

Q: What if a building is both a Recorded Texas Historic Landmark and listed in the National Register of Historic Places?
A: This letter addresses only buildings that are Recorded Texas Historic Landmarks but are not listed in the National Register. It confirms the exemption applies to labor on buildings listed in the National Register, per Rule 3.357(e)(4).

Q: Could the answer change based on different facts?
A: Yes. The letter states the opinion is based on the facts presented, and the opinion may change if there are additional or different facts.

Citations and references

Regulations:

• 34 Tex. Admin. Code Rule 3.357(e)(4)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9507L1353F08

Original ruling text

July 6, 1995

Dear ****:

Thank you for your letter concerning the taxability of labor to repair,
remodel, restore or renovate buildings that are Recorded Texas Historic
Landmarks, but are not listed in the National Register of Historic Places.

Rule 3.357(e)(4) exempts the labor involved in the remodeling, restoring,
or repairing buildings listed in the National Register of Historic Places.
The rule does not exempt the labor involved in remodeling, repairing or
restoring buildings that are Recorded Texas Historic Landmarks, but are not
listed in the National Register of Historic Places.

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. The direct
line is 512 463-4683. You may also write to Tax Administration Division,
Comptroller of Public Accounts.

Sincerely,

Eddie Washington
Tax Administration Division

NOTE: Previous Accession Number 9507198L