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.”