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Friday, 06 May 2011 16:26

ASA Testifies at Texas Franchise Tax Law Hearing

The Automotive Service Association (ASA) has testified before the House Ways and Means Committee of the Texas General Assembly in Austin, Texas, about an inequity in the current Texas Franchise Tax code.

In her testimony, Denise Caspersen, ASA’s Collision Division manager, discussed the association’s support for Texas House Bill 429, a bill introduced by Rep. Allen Fletcher, R-130, to reclassify the automotive repair industry as “retail” for purposes of the franchise tax.

“Currently, in the Texas Franchise Tax code, automotive repair and collision shops owned and operated by new or used car dealerships are taxed at half the rate used to tax independently owned automotive repair businesses doing identical work,” said Caspersen. “The tax code classifies dealership sales as ‘retail’ and allows their service and repair business to be included under that banner. Texas independent repairers are seeking similar treatment.”

ASA members from Texas also spoke in support of the legislation.

House Bill 429, if passed, would allow automotive repair shops to be taxed the same amount that dealers, parts stores and tire stores are now taxed. The Texas Senate has also introduced its version of the bill, Senate Bill 476.

ASA is asking Texas repairers to continue to support House Bill 429 and its companion, Senate Bill 476, by contacting their state legislators urging support for the legislation.



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