All charges for labor and materials to rebuild, replace, alter, modify or upgrade existing nonresidential realty are taxable.
New Construction. The labor for new construction is not taxable and the incorporated materials are taxable. The person or entity responsible for paying the tax depends on the type of contract used. As a contractor, you can bill your customers using either a lump-sum or a separated contract.
Taxable Services Amusement Services. Cable Television Services and Bundled Cable Services. Credit Reporting Services. Data Processing Services. Debt Collection Services. Information Services. Insurance Services. Internet Access Services.
Some customers are exempt from paying sales tax under Texas law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.