The Comptroller’s office has compiled information for Hurricane Harvey evacuees and relief workers, including information on how to request an extension for reporting and paying taxes.
Many taxpayers are unable to file taxes on time because of damage caused by Hurricane Harvey and Hurricane Irma. The Comptroller’s office is allowing limited temporary extensions of time to file taxes for businesses in Texas counties designated by the Federal Major Disaster Declaration. These extensions only apply to businesses in those counties.
The decision to offer extensions upon request for the immediate reporting periods, rather than simply granting an extension to businesses in all affected counties, was made because we must balance the need for relief with the responsibilities of this office.
The Comptroller’s office will evaluate whether additional filing periods may be eligible for extensions as due dates approach.
Select the topic below for more information about these extensions.
For the 2017 franchise tax reports with valid extensions to Nov. 15, the Comptroller’s office is granting an automatic extension to Jan. 5, 2018, to businesses located in the federally declared disaster area in Texas. Businesses located in these counties do not need to request an extension for their franchise tax reports.
Service providers who file franchise tax reports on behalf of other taxpayers can request a franchise tax extension if the provider is affected by Hurricane Harvey and is located in a Texas county designated by the Federal Major Disaster Declaration. See How to Request an Extension.
The Comptroller’s office is granting businesses located in the federally declared disaster area in Texas that are not required to report (file) electronically an automatic 30-day extension to complete the following sales and use tax reports:
Taxpayers are not required to report electronically if they paid less than $50,000 in sales and use tax in the preceding state fiscal year (Sept. 1 to Aug. 31). Taxpayers located in the federally declared disaster area in Texas who are not required but choose to report electronically will also receive the automatic extension.
For monthly sales and use tax filers not required to file electronically, the extended deadline for the August monthly report, normally due on September 20, is October 20. The September monthly report remains due on the normal due date, October 20. This means the taxpayer will have two monthly reports, the August and September reports due on the same date.
For quarterly sales and use tax filers not required to file electronically, the extended deadline for the July-Sept. quarterly report, normally due on October 20, is November 20. The Oct.-Dec. quarterly report remains due on January 20.
Taxpayers who may need more than 30 days to file may submit an extension request for more time. See How to Request an Extension.
Taxpayers who are required to report electronically do not get the automatic extension, but may request a 30-day extension of time to file. See How to Request an Extension.
Taxpayers required to electronically report sales and use tax and taxpayers reporting other tax types may request a 30-day extension of time to file if located in the federally declared disaster area in Texas. Taxpayers affected by Hurricane Harvey or Hurricane Irma located in disaster areas outside of Texas may also request a 30-day extension of time to file. See How to Request an Extension.
To receive a valid extension based on inability to file timely due to the disaster, please provide the following information:
Extension requests due to disasters are handled on a case-by-case basis. The taxpayer will be notified when an extension request is granted or denied.
A person or entity that would like to request filing deadline extensions for several businesses at once can submit the required information in a spreadsheet format with this information.
Governor Greg Abbott has suspended collecting all state and local hotel occupancy taxes from the victims of Hurricane Harvey or personnel participating in hurricane relief efforts.
The tax suspension began Aug. 23, 2017, and goes through Sept. 22, 2017.
The Governor has issued a temporary waiver of the International Fuel Tax Agreement (IFTA) until Sept. 30.
The Comptroller will suspend requirements that the trucking industry pay tax on motor fuel used in Texas when delivering relief supplies and fuel into the state. The waiver also suspends all IFTA licensing requirements, including trip permits, for trips to deliver relief supplies and fuel into Texas.
After Sept. 30, the Comptroller’s office, in conjunction with Governor’s office, will determine if the waiver should be extended.
For a limited time, state and local hotel taxes are suspended for victims and relief workers of Hurricane Harvey. The tax suspension is for a period beginning on Aug. 23, 2017, and ending on Sept. 22, 2017. The hotel does not need to be in the declared disaster area.
Hurricane Harvey victims and relief workers should complete a Form 12-302, Texas Hotel Occupancy Tax Exemption Certificate (PDF). Hotel managers should mark the “Exempt by Other Federal or State Law” box and write “Hurricane Harvey” anywhere on the form.
Request a Form 12-302, Texas Hotel Occupancy Tax Exemption Certificate (PDF) from Hurricane Harvey victims and relief workers. They will mark the “Exempt by Other Federal or State Law” box and write “Hurricane Harvey” anywhere on the form.
Hotel tax refund requests should be made to the hotel that collected the tax. After refunding the tax, the hotel can adjust taxable receipts on a current return to take credit for the refund. The hotel can also complete Form 00-985 Assignment of Right to Refund (PDF), which is for state hotel tax only.
For more information on hotel tax refunds, see Hotel Occupancy Tax - Filing For a Refund.
The taxes that are paid by the third-party website to the hotel (and ultimately to the state and local governments) are only a portion of the taxes and fees that are assessed by the third-party website. The hotel and the third-party website can only refund the portion of the taxes and fees that represent the tax amount remitted to the state and/or local governments.
Victims and relief workers who reserved and paid for their rooms through a third-party website can request their refund of taxes paid from that third-party website or the hotel.
To request a refund, victims and relief workers should complete a Form 12-302, Texas Hotel Occupancy Tax Exemption Certificate (PDF). They should mark the “Exempt by Other Federal or State Law” box and write “Hurricane Harvey” anywhere on the form.
After refunding the tax, the hotel or third-party website can adjust taxable receipts on a current return to take credit for the refund.
In Texas, permanent residents are exempt from hotel tax. Permanent residents are exempt:
During the tax suspension period, hotel managers only need to look at the first 30 days to determine if hotel tax is due. Hurricane victims and relief workers are exempt from hotel tax for stays during the suspension period and when they qualify as permanent residents as described above.
An exempt organization may choose to pay tax. If FEMA requests to be billed for hotel taxes, charge FEMA the tax. Include FEMA room charges as taxable receipts on Form 12-100 Texas Hotel Occupancy Tax Report (PDF).
Hurricane victims and relief workers who stayed at the hotel for the previous 30 or more consecutive days may claim exemption as permanent residents when the short-term lodging program expires. If the hotel creates a new guest folio, for audit purposes, the hotel should note on the new folio that the resident has occupied a room for 30 or more consecutive days and reference the old folio number.
To respond to the natural disaster and speed up the delivery of fuel into Texas from Sept. 1 through Sept. 30, the Comptroller’s Office will issue expedited licenses to motor fuel distributors, importers, and transporters to import fuel. The Comptroller’s office will waive the bond requirement for these distributors and importers. There is no bond requirement for transporters.
Yes. On August 30, 2017, the Internal Revenue Service (IRS) and the Environmental Protection Agency (EPA), in response to the emergency caused by Hurricane Harvey, temporarily lifted their restrictions on using dyed diesel fuel on roads and highways. The penalty relief is available statewide if:
The Governor and Comptroller support the Hurricane Harvey relief action and are lifting the state's restrictions on the taxable sale and use of dyed diesel fuel in state declared disaster areas. The Governor’s disaster proclamation is limited to the following counties: Angelina, Aransas, Atascosa, Austin, Bastrop, Bee, Bexar, Brazoria, Brazos, Burleson, Caldwell, Calhoun, Cameron, Chambers, Colorado, Comal, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Grimes, Guadalupe, Hardin, Harris, Jackson, Jasper, Jefferson, Jim Wells, Karnes, Kerr, Kleberg, Lavaca, Lee, Leon, Liberty, Live Oak, Madison, Matagorda, Milam, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Augustine, San Jacinto, San Patricio, Trinity, Tyler, Victoria, Walker, Waller, Washington, Wharton, Willacy and Wilson counties.
The Comptroller will not impose or collect the state motor fuel tax on dyed diesel fuel sold and used on-highway between August 25, 2017 and September 15, 2017, in the above declared disaster areas.
As with the federal tax, the operator of the highway vehicle in which the dyed diesel fuel is used will be required to pay the 20 cents per gallon state tax on the fuel used on-road outside of the counties listed above.
A person who paid the tax on clear diesel fuel purchased and used in off-highway equipment for hurricane relief and recovery efforts within the counties declared disaster areas by the Governor can file a refund claim with the Comptroller's office. The refund claim is valid for clear diesel fuel used from August 25 through September 15, 2017.
A person filing for refund will use Form 06-106, Texas Claim for Refund of Gasoline and Diesel Fuel Taxes (PDF). To claim a refund, simply enter the number of gallons of clear diesel fuel purchased and used on line 10 "Other claims not covered by above methods." The explanation required should indicate that the claim is due to Hurricane Harvey. Refund claims must be supported by fuel receipts and documentation of use as provided on the form.
Refund claims must be postmarked on or before December 31, 2017.
Yes. The governor has temporarily waived IFTA requirements when delivering relief supplies and fuel into Texas. The waiver covers both the payment of the IFTA tax and licensing requirements, including trip permits. This waiver will be in effect until Sept. 30 at which point the Comptroller’s office in conjunction with Governor’s office will examine the need to extend the waiver.
No. Motor fuels tax has its own waiver. Please see the FAQs on this page for more information.
No. This waiver only covers Texas. For additional waivers by other states please visit the IFTA website at www.iftach.org.
An IFTA licensee must keep documentation on fuel purchased and miles traveled in Texas directly related to hurricane relief efforts while providing supplies and fuel to the affected areas from Sept. 1 through Sept. 30, 2017. This information must be included on the IFTA report but miles traveled during this period for the purpose of hurricane relief are considered tax-exempt miles.
A non-licensed person is also required to keep documentation, but there is not a reporting requirement.
Taxpayers should contact our IFTA section at 512-463-3678 with any questions on how to report miles traveled and gallons purchased related to hurricane relief on the IFTA report.
You can claim exemption from sales tax on the following labor charges by giving the seller an exemption certificate (PDF). The certificate must give the reason for claiming the exemption; for example, "Repair of damaged tree due to a declared natural disaster in Panola County."
Yes. Sales and use tax is due on the purchase, lease or rental of tools and other equipment that will be used in declared disaster areas. A purchase, lease or rental of these items only qualifies for exemption from Texas sales and use tax in the following situations:
Sellers must keep documentation relating to the above situations for four years from the date of sale.
No. Disaster victims making purchases with personal funds are not exempt from paying sales tax unless the items will be donated to an entity exempt from sales tax prior to any use by the purchaser. An individual making a purchase that will be donated to an entity exempt from sales and use tax will issue an exemption certificate for that purpose.
Yes. Purchasers are not required to pay Texas sales and use taxes on taxable goods and services purchased with a FEMA debit card or voucher. Retailers must keep documentation that the items were purchased with a FEMA debit card or voucher for four years from the date of sale. The documentation can be either a copy of the voucher or a copy of the receipt issued to the purchaser. The receipt copy must be clearly marked "FEMA" and signed by the purchaser.
Because FEMA debit cards and vouchers are federal government purchases, no additional documentation is necessary.
If a taxable item or service is purchased with a combination of a FEMA debit card or voucher AND cash or a personal credit/debit card, the retailer must collect sales and use tax on the amount of the purchase that was paid with personal funds but not on the amount paid with a FEMA debit card or voucher.
Note that purchases of motor vehicles made with a FEMA debit card or voucher are not exempt from Texas motor vehicle sales tax. In these cases, the title passes from the seller to the individual. The vehicles are not being sold to an exempt organization.
Yes. Purchasers are not required to pay Texas sales and use taxes on taxable goods and services purchased with a Red Cross debit card or voucher. Retailers must keep documentation that the items were purchased with a Red Cross debit card or voucher for four years from the date of sale. The documentation can be either a copy of the voucher or a copy of the receipt issued to the purchaser. The receipt copy must be clearly marked "Red Cross" and signed by the purchaser.
If a taxable item or service is purchased with a combination of a Red Cross debit card or voucher AND cash or a personal credit/debit card, the retailer must collect sales and use tax on the amount of the purchase that was paid with personal funds but not on the amount paid with a Red Cross debit card or voucher.
Note that purchases of motor vehicles made with a Red Cross debit card or voucher are not exempt from Texas motor vehicle sales tax. In these cases, the title passes from the seller to the individual. The vehicles are not being sold to an exempt organization.
No. Purchases made by individuals using funds in personal accounts, even if those funds were given to the individual by an exempt organization, are not exempt. Purchases of taxable items an individual makes in Texas do not qualify for an exemption or refund of sales tax unless the individual is donating the items for a qualifying organization's use.
Yes. Ready-to-eat food qualifies for exemption when purchased with a FEMA or Red Cross debit card or voucher.
Sellers of the prepared food must keep a copy of the receipt in their records. The receipt copy must be clearly marked "FEMA" or "Red Cross" and must be signed by the purchaser.
Yes. The sales tax exemption does not extend to purchases of alcohol and tobacco products when using FEMA or Red Cross debit cards and/or vouchers; therefore, sales tax is due.
Items purchased with a Salvation Army voucher are not subject to Texas state and local sales and use taxes. Retailers should show the amount of the Salvation Army voucher on the invoice, deduct that amount before computing the sales tax, and keep a copy of the voucher to substantiate the sale to the Salvation Army on behalf of the individual. In addition, the Salvation Army should provide a properly completed exemption certificate for purchases made with Salvation Army vouchers.
Yes. A school district or a PTA can claim an exemption from sales tax on purchases of school supplies and clothing that will be given to students who are victims of a declared natural disaster. Vendors selling to school districts or PTAs must have written purchase orders/vouchers available for audit review to substantiate sales exempt from sales tax.
Generally, all sales of taxable items are subject to tax, even if all proceeds will be donated to a charity. However, there are a variety of events that can be held as fundraisers that are not subject to tax, including:
Each chapter of an organization qualifying for sales tax exemption under the religious, educational or charitable category, as well as organizations exempted from sales tax based on their IRS Section 501 (c)(3), (4), (8), (10) or (19) status, can hold two one-day, tax-free sales or auctions each calendar year. During each one-day sale, the organization does not need to collect sales tax. For purposes of the exemption, one day is counted as 24 consecutive hours. The exemption does not apply to items sold for more than $5,000 unless the organization manufactures those items or the items are donated to the organization and not sold back to the donor.
College or university student organizations affiliated with an institution of higher education can hold a one-day, tax-free sale each month. The organization must have a primary purpose other than engaging in business or performing an activity designed to make a profit, and the purpose of the sale must be to raise funds for the organization. The exemption does not apply to items sold for more than $5,000 unless the organization manufactures those items or the items are donated to the organization and not sold back to the donor.
Youth athletic organizations, volunteer fire departments and chambers of commerce cannot hold tax-free sales.
An out-of-state business entity that enters Texas at the request of an in-state business entity under a mutual assistance agreement, or that is an affiliate of an in-state business entity is exempt from Texas licensing and registration requirements when its business in Texas is limited to performing disaster- or emergency-related work to repair or restore damaged critical infrastructure during a disaster response period in a declared disaster area. The out-of-state entity will not be required to collect and remit Texas sales and use tax on its sales of taxable items in Texas nor on its purchases of taxable items that are sold or transferred to its customers during a disaster response period.
An out-of-state entity will not be considered engaged in business in Texas if the entity's physical presence in Texas is solely for performing disaster- or emergency-related work to repair or restore damaged critical infrastructure during a disaster response period. The out-of-state business entity is not required to register with the Secretary of State or to file or pay any state or local taxes, including franchise tax, when performing disaster- or emergency-related work during a disaster response period.
The out-of-state entity will not owe use tax on equipment brought into Texas used only by the entity to perform disaster- or emergency-related work to repair or restore damaged critical infrastructure during the disaster response period, and removed from Texas by the entity following the disaster response period. The out-of-state entity will owe sales tax on its purchases of taxable items for its own use.
The law does not provide an exemption for taxable items sold by the out-of-state business described by the bill. Purchasers are still responsible for use tax on any taxable items purchased from such an out-of-state business entity.
In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.