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RULE §3.292Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property

    (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); or

    (B) an area declared a disaster area by the President of the United States under 42 United States Code, Chapter 68 (Disaster Relief).

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

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