Disaster Holiday

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ChiefExecutive Officers, Chief Operations Officers, and Compliance Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies of Foreign Banks; Department and Division Heads; all Examining Personnel; and other interested parties

The Comptroller of the Currency, or an appointed designee, has the authority to declare a legal holiday for banks in the event of natural calamity, riot, insurrection, war, or other emergency conditions whether caused by acts of nature or man (hereinafter referred to as "events").

A written proclamation of a legal holiday, unless otherwise directed, provides bank management the discretion to make individual decisions to remain open, or close, for the duration of the event. It is anticipated that only those banks or offices directly affected by the event will close, and those banks or offices that close will make every effort to reopen as quickly as possible to address the banking needs of their customers and communities.

Regardless of whether a legal holiday has been declared through a written proclamation, bank management has the discretion in the case of any emergency or event, to act prudently and responsibly to ensure the safety of human life and to safeguard banking assets (tangible and intangible).

If a disaster or other event is expected to result in long-term or widespread disruption of critical services, and banks operate or have customers in areas that are affected by the event, the OCC encourages banks to consider

Examiners will not criticize these types of responses as long as the actions are taken in a manner consistent with sound banking practices. The OCC recognizes adjusting or modifying payment terms may be the most reasonable option for some borrowers when done prudently, and documentation deficiencies may occur because of bank staffing shortages and business disruptions during a recovery period. The OCC's Bank Accounting Advisory Series and the FFIEC instructions to the Reports of Condition and Income ("call reports") provide additional guidance on accounting and reporting issues that may arise in the event of a disaster. The OCC may also temporarily waive the Qualified Thrift Lender requirements for federal savings associations in order to help rebuild affected businesses. Lastly, the OCC will consider a bank's support of recovery-related activities in a disaster and help in revitalizing and stabilizing the affected area under provisions of the Community Reinvestment Act.

The OCC, as a member of the Financial and Banking Information Infrastructure Committee, can help expedite requests for assistance for critical issues such as cash availability or delivery and the restoration of telecommunication services. Additionally, the OCC will also be ready to approve temporary facilities that may be needed to replace facilities damaged or destroyed as a result of an event. A bank should promptly notify its supervisory office if the bank expects a delay in filing Reports of Condition and Income or other reports. The OCC will evaluate any causes beyond the control of a reporting institution when considering the length of an acceptable delay.

Should an event occur in a bank's area, a good source of information is the Federal Emergency Management Agency Website at www.fema.gov. The Federal Emergency Management Agency promptly provides disaster information, including major disaster declarations by the President of the United States. In addition, regional coalitions have been formed in several areas around the United States to facilitate the recovery of the financial services sector following a natural disaster or man-made attack. The coalitions facilitate information sharing with the government as well as with strategic partners during a crisis and are open to all members of the financial services sector. A list of regional coalitions is located at www.rpcfirst.org/partnerships.asp.

"As we saw last year with Hurricane Ian, a disaster can bring a host of needs to people in its path. Advanced preparation can help keep people, homes, and pets safe when disaster strikes," said Jim Zingale, Executive Director of the Florida Department of Revenue. "The 2023 Disaster Preparedness Sales Tax Holiday helps Floridians save money while gathering essential supplies."

The 2023 Atlantic Hurricane Season begins on June 1 and lasts until November 30. A full list of eligible tax-free items is available here. Floridians can find a full disaster supply kit checklist here.

House Bill 7073 was signed into law by Governor Ron DeSantis to provide much-needed financial relief for families to prepare for hurricane season, in addition to a number of other tax holidays. This year, Floridians are expected to save millions on vital disaster preparedness supplies such as pet supplies, tarps, batteries, generators and flashlights, which are all included in the list of items eligible to be purchased tax-free.

The 2024 Atlantic Hurricane Season begins on June 1 and lasts until November 30. A full list of eligible tax-free items is available here. Floridians can find a full disaster supply kit checklist here.

Natural disasters will continue to happen. Prepare yourself during the 2025 Emergency Preparation Supplies Sales Tax Holiday for emergencies that can cause physical damage like hurricanes, flash floods and wildfires. You can purchase certain emergency preparation supplies tax free during the sales tax holiday. There is no limit on the number of qualifying items you can purchase, and you do not need to give an exemption certificate to claim the exemption.

Note: Several over-the-counter self-care items, such as antibacterial hand sanitizer, soap, spray and wipes, are always exempt from sales tax if they are labeled with a "Drug Facts" panel in accordance with federal Food and Drug Administration (FDA) regulations.

During the holiday you can buy qualifying emergency preparation supplies in-store, online, by telephone, mail, custom order, or any other means. The sale of the item must take place during the specific period. The purchase date is easy to determine when the purchase is made in-store but becomes more complicated with remote purchases. The purchaser must have given the consideration for the item during the period even if the item may not be delivered until after the period is over.

Delivery, shipping, handling and transportation charges are part of the sales price. Consider these charges when determining whether an emergency preparation supply can be purchased tax free during the holiday.

Purchasers can buy certain emergency preparation supplies tax free during the annual Texas Emergency Supplies Sales Tax Holiday. If you pay sales tax on these items during the sales tax holiday, you can ask the seller for a refund of the tax paid. The seller can either grant the refund or provide their customer with Form 00-985, Assignment of Right to Refund (PDF) that allows the purchaser to file the refund claim directly with the Comptroller's office.

The first Florida Disaster Preparedness Sales Tax Holiday of the year runs through Friday, June 14. Qualifying items related to disaster preparedness are exempt from sales tax. Eligible items include:

The sales tax holiday does not apply to the rental or repair of any of the qualifying items. Additionally, the sales tax holiday does not apply to sales in a theme park, entertainment complex, public lodging establishment or airport.

Disaster Recovery Centers provide disaster survivors with information from Florida state agencies, FEMA and the U.S. Small Business Administration. Survivors can get help applying for federal assistance, learn about the types of assistance available, learn about the appeals process and get updates on applications.

Disaster Recovery Centers are accessible to people with disabilities and have assistive technology equipment that allows disaster survivors to interact with staff. Video Remote Interpreting is available and in-person sign language is available by request. The centers also have accessible parking, ramps and restrooms.

It is not necessary to visit a center. Survivors can apply by calling 800-621-3362, going online at disasterassistance.gov, or using the FEMA mobile app. The line is open every day from 7 a.m. to 10 p.m. ET. Help is available in most languages. If you use a relay service, such as video relay (VRS), captioned telephone or other service, give FEMA your number for that service. To view an accessible video about how to apply visit: Three Ways to Register for FEMA Disaster Assistance - YouTube.

Travelers wait in line at the Southwest Airlines ticketing counter at Nashville International Airport after the airline canceled thousands of flights in Nashville, Tenn., on Dec. 27, 2022. The Department of Transportation is investigating the disaster, which led to $220 million in losses for Southwest Seth Herald/AFP via Getty Images hide caption

The U.S. Department of Transportation is investigating the Southwest Airlines holiday travel debacle, which left thousands of travelers stranded for days. The investigation comes as the airline reported a $220 million loss last quarter and further losses in the first quarter.

Southwest canceled more than 16,700 flights over several days in late December. While a massive winter storm caused the initial cancellations, the company's outdated software systems turned what should have been a normal problem into a snowballing disaster that lasted for days after other airlines had resumed their usual operations.

The department's investigation will look into whether Southwest made unrealistic flight schedules, "which under federal law is considered an unfair and deceptive practice," according to a department spokesperson.

About half of those losses come directly from the flight cancellations. The rest largely come from compensating customers who bought tickets on other airlines and dispensing extra frequent flier points, which are worth about $300 per passenger.

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