The Texas Comptroller has released guidance explaining how tax applies when the Governor of Texas or the President of the United States declares a location in Texas to be a disaster area. Tax relief provisions relevant to a period of disaster include:
- Filing Extensions - Texas allows taxpayers to request filing extensions. Decisions on extensions are made on a case-by-case basis.
- Exemption for Relief Organizations - Texas provides sales and use tax exemptions for certain entities (government, nonprofit, etc.).
- Salvation Army and Red Cross Vouchers - Tax is not due on taxable items purchased at a Salvation Army retail outlet or thrift store with a Salvation Army voucher. Food purchased with a Red Cross voucher is not taxable.
- FEMA Debit Cards - Food purchased using FEMA debit cards is not taxable.
- Out-of-State Businesses Performing Disaster-Related Work - Texas does not require out-of-state businesses performing disaster recovery work to collect tax if the business (1) is in the state as an affiliate of an in-state business or at the request of an in-state business under a mutual assistance agreement, and (2) only performs disaster-related work to repair or restore critical infrastructure during a disaster response period in a declared disaster area.