Texas passed House Bill 500, amending the tax code definition of “retail trade,” which reclassified independent body shops as eligible for a reduction to 0.5 percent tax, the same that dealership body shops were paying under the “retail” classification. But Robert Jordan of Protech Collision Repair Center in Webster, TX, says he and other repairers should have the .05 extra they have been paying refunded back to them. The Texas Comptroller apparently disagrees: “H.B. 500 did not make the amendment to the tax code retroactive, therefore payment adjustments would not be made for past reports,” said R.J. DeSilva, spokesperson, Texas Comptroller.
Jordan estimates his additional tax paid to be $84,000. “I’m not asking for anything that’s not fair and not reasonable,” Jordan told a media source. “I want my .05 back. Any fool who is not asking for it should be. This is a serious hosing and needs to be addressed.” Jordan says he’s going to refile his tax forms showing the correct amount he would have paid had he been a dealer shop.