Collision Repair

Connecticut Senate considers shop tax legislation

March 11, 2016

In a letter of support submitted to the Committee, ASA also described how taxation of paint and materials is unfairly applied when shops purchase it, and again when they sell it.

ABRN Wire Reports

The Connecticut Joint Committee on Finance, Revenue and Bonding recently held a hearing on Senate Bill (SB) 335. If passed, this legislation would eliminate the sales and use tax on goods used exclusively in a business process. Specifically, SB 335 would correct a 1999 Department of Revenue Services ruling that has allowed taxation on paint and materials at the point-of-sale to shops, followed by shops then taxing customers for the same paint and materials.

Speaking on behalf of the bill, Lisa Siembab, executive director of the Automotive Service Association of Connecticut (ASA-CT) said, “Collision repairers in the state of Connecticut have been unfairly penalized by an interpretation of the law that allows paint and materials to be subject to double taxation. ASA-CT believes that the current law does not take into consideration the evolution of industry practices, and we think that SB 335 is a good first step toward lifting this unnecessary burden on small businesses and their customers.”

In a letter of support submitted to the Committee, ASA also described how taxation of paint and materials is unfairly applied when shops purchase it, and again when they sell it. It also explained that today’s auto body repair business practices, related to the purchase of paint and materials, works to the advantage of vehicle owners or consumers and the environment, i.e. purchasing and mixing what is needed.

To view the text of the legislation, please go to www.TakingTheHill.com.

The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry.

ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. To take advantage of the many benefits of membership in ASA, please visit www.ASAshop.org or call (817) 514-2900.

For additional information about ASA, including past media releases, go to www.ASAshop.org, or visit ASA’s legislative website at www.TakingTheHill.com.