Have a Tax Question? Ask a Tax Expert
Welcome and thank you for giving me the opportunity to assist you with your tax question.
I am assuming you are asking about sales tax. Texas tax law refers to tangible personal property and taxable services as taxable items. Each sale of a taxable item is taxable unless a specific exemption applies. In the case of taxable services, all charges for labor and materials to rebuild, replace, alter, modify or upgrade existing NONRESIDENTIAL realty are taxable.
My point of reference is the following: http://www.window.state.tx.us/taxinfo/sales/faq_collect.html
Please let me know if you require further information or clarification. Thank you.
This is a residential project, am I to assume that none of the material or labor therefore is taxable (yes, I'm talking about sales tax)?
Tangible personal property (materials) is taxable. The labor is not because it is a residential project.