Given that Brazoria County has been officially declared a disaster area, citizens and businesses should be informed of tax exemptions and extensions available to them to avoid unnecessary expenses.

The IRS has announced that Texas taxpayers residing in disaster counties may postpone tax filing and payments until January 5, 2009.  This will allow extra time for people to stay focused on the rebuilding and cleanup effort.  The IRS computer system automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief.  If an affected taxpayer receives a penalty notice from the IRS, they should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply.  The IRS disaster hotline is (866) 562-5227.

Texas Comptroller Susan Combs also announced that state law allows for certain sales tax exemptions in the wake of a disaster.  Additionally, businesses damaged by Hurricane Ike may postpone paying state taxes, if necessary, while they clean up wind and flood damage.  Upon request, taxpayers may be granted an extension of up to 90 days to file state tax returns due in September and October.

To that end, I wanted to make you aware of the Texas Comptroller's Hurricane Ike Information Website at www.window.state.tx.us/disaster.  Questions about paying tax on storm recovery services, as well as business requests for a filing extension, should be directed to the Comptroller's office at (800) 252-5555.  Extension requests can also be emailed to tax.help@cpa.state.tx.us.

This website contains a wealth of information; however, below is a summary of some of the storm recovery-related expenses that may be exempt from state and local sales tax.

• The cost of labor to repair storm damage to non-residential property, including offices, stores, and other commercial buildings.  The cost of labor must be separately stated on the repair bill.
• Texas never imposes sales tax on labor for residential repairs.
• Services used to restore storm-damaged property, including dry cleaning of clothing and draperies; rug and carpet cleaning; furniture cleaning; and appliance repairs.
• Charges for cutting storm-damaged or downed trees.  Charges to haul away trees and limbs are taxable, as are charges to haul away other storm debris.
• Certain charges related to mold remediation.
• Purchases made with vouchers or debit cards provided by FEMA, the Red Cross, and the Salvation Army.  Storm-related purchases made with cash donations or personal funds are subject to sales tax.
• For evacuees taking shelter in hotels and motels, the Governor has waived state and local hotel taxes for a 14-day period that began September 8.  Storm victims who remain in a hotel for 30 days or more may claim an exemption for their entire stay.

My office remains committed to assisting the citizens of Brazoria County through this disaster.  We can be contacted at 979-848-1770 or 512-463-0564.