By Grace White
September 6, 2017
If you’re hiring someone to clean out your flooded home, you should not be paying sales tax for the labor. One homeowner contacted KHOU after he noticed it on his quote.
“We’re looking at pictures of family,” said Alan Price, whose Timbergrove home flooded in Northwest Houston.
He saved what he could and then hired the national franchise Servpro to do demolition at his home.
“8.25% tax to be added to final bill,” he showed us reading his emailed quote. “I thought goodness that’s kind of kicking people when they are down, charging tax on top of disaster relief,” said Price.
In fact, in the state of Texas labor charges for residential repairs are not subject to sales tax, but materials still are. Although on Price’s $22,000 dollar quote, the distinction is not clear.
“It’s just a blank statement 8.25% tax to be added on final bill,” he said.
So, we called Servpro and a spokeswoman sent KHOU this statement:
“The statement on the estimate is simply intended as a disclosure to customers that the appropriate sales tax rate will be applied to taxable services. The stated 8.25% is only an estimate and the appropriate rates will be applied to the final invoice. Our Franchise Operators are required to comply with all local laws, including charging and collecting appropriate sales tax from their customers. All sales taxes collected will be paid to the state.”
“I know they are very, very busy, but certainly I think they could do a better job of explaining of what their pricing actually entails,” said Price.