| (B) The sale of a contract that provides that a warrantor
will reimburse a purchaser for payments made to replace, repair, remodel,
maintain, or restore faulty, damaged, lost, or stolen tangible personal
property, including the amount of any sales and use tax, is not taxable.
In addition, the amount reimbursed to the purchaser of the faulty,
damaged, lost, or stolen tangible personal property by the warrantor
under such a contract is not taxable.
(e) Services performed on real property. Persons who
build new improvements to real property, or repair, restore, or remodel
residential real property belonging to others, should refer to §3.291
of this title (relating to Contractors). Persons who repair or remodel
nonresidential real property belonging to others should refer to §3.357
of this title (relating to Nonresidential Real Property Repair, Remodeling,
and Restoration; Real Property Maintenance).
(f) Fabricating or processing tangible personal property.
Persons who fabricate or process tangible personal property belonging
to another should refer to §3.300 of this title.
(g) Exemption for disaster areas.
(1) Labor to repair, restore, remodel, or maintain
tangible personal property is exempt if:
(A) the amount of the charge for labor is separately
stated from any charge for tangible personal property on the invoice,
contract, or similar document provided by the service provider to
the purchaser; and
(B) the service is performed on tangible personal property
that was damaged within a disaster area by the condition that caused
the area to be declared a disaster area.
(2) The exemption does not apply to tangible personal
property transferred from the service provider to the purchaser as
part of the repair.
(3) In this subsection, "disaster area" means:
(A) an area declared a disaster area by the Governor
of Texas under Government Code, Chapter 418 (Emergency Management);
(B) an area declared a disaster area by the President
of the United States under 42 United States Code, Chapter 68 (Disaster
|Source Note: The provisions of this §3.292 adopted to be effective December 12, 1996, 21 TexReg 11805; amended to be effective December 25, 2000, 25 TexReg 12809; amended to be effective September 5, 2006, 31 TexReg 7133; amended to be effective June 19, 2017, 42 TexReg 3157