The bill would benefit independent shops by making them eligible for the lower .5% margin tax rate that shops owned by dealerships are privy to.
The full text of the bill is as follows:
“Relating to the classification of automotive repair shops as primarily engaged in retail trade for purposes of the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.0001(12), Tax Code, is amended to read as follows:
(12) “Retail trade” means:
(A) the activities described in Division G of the 1987 Standard Industrial Classification Manual published by the federal Office of Management and Budget; and
(B) the activities classified as Industry Group 753 of the 1987 Standard Industrial Classification Manual published by the federal Office of Management and Budget.
SECTION 2. This Act applies only to a report originally due on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2012.”
For more information please visit www.asatx.org.