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Monday, 03 December 2012 19:53

HABA Protests Unfair Franchise Tax Margins

Written by staff

In a letter regarding franchise tax margins for dealer-owned body shops versus independently-owned shops, the Houston Auto Body Association protested the “unfair” margin.

HABA president James Brown sent an email to Congresswoman Carolyn Saegert Nov. 29, on the day the Ways and Means Committee met, urging the committee to reconsider.

“Our members are very troubled about the unfair franchise tax margin between new car dealer-owned body shops (1/2%) versus the 1% the independent-owned body shops are required to pay,” Brown said in his letter.

“Given that both provide the exact same repair, it is unacceptable that the independent-owned body shops should pay twice the amount as dealer-owned body shops. This has caused undue financial burden on small businesses, especially in these tough economic times we are facing,” Brown said.

He added, “We expect that the Ways and Means Committee would recommend that this unfair taxation on small businesses be corrected to both the House and Senate.”

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