The Texas Comptroller recently released guidance on the taxability various methods for heating a home. Texas does not tax the sale of natural gas or electricity used to heat or power homes. However, some local cities and special purpose districts associated with those cities can choose to impose local sales tax on those sales. The use of propane for residential or nonresidential real property is exempt, and sales of butane and kerosene are exempt by law. An exemption certificate is not required for these sales. The sale of firewood is taxable, including any additional fees for delivering, packing, and stacking. Sales tax is also due when hiring someone to cut down or cut up a tree for firewood.