Texas Franchise Tax Bill, Substitute House Bill 500, was recently placed on the General State Calendar and the bill could be addressed soon. Currently, automotive service and collision repair shops owned and operated by new or used car dealerships are taxed at half the rate used to tax independent automotive repair facilities doing identical work. The Texas state tax code classifies dealership sales as “retail” and allows their service and repair business to be included under that banner.
Texas Franchise Tax Bill, Substitute H.B. 500, states that “the activities classified as Industry Group 753 of the 1987 Standard Industrial Classification Manual published by the federal Office of Management and Budget” fall under Retail Trade,” addressing the Texas inequity.
According to Charles Parker, executive director of ASA-Texas who testified recently on behalf of ASA: “This legislation is critical in helping the independent repair shops of Texas by correcting the unfair taxation of independent repair shops throughout Texas. We are grateful to Rep. Allen Fletcher (TX-130) and Rep. Harvey Hilderbran (TX-53) for leading this fight for independent automotive repairers.”
ASA requests that Texas members rally around Substitute House Bill 500 by sending a letter to their legislators urging them to support this bill. To contact Texas legislators, simply visit ASA’s legislative website at www.TakingTheHill.com and click “View Current Alerts.”
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. For additional information about ASA, including past news releases, go to www.ASAshop.org, or visit ASA’s legislative website at www.TakingTheHill.com.
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