The Automotive Service Association (ASA) is concerned about
inequities in the Texas Tax Code. 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. 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.
Texas state Rep. Allen Fletcher, Texas-130, has filed a bill to classify the auto repair industry as “retail” for purposes of the franchise tax. This would make it so that repair shops would be taxed the same half-percent that dealers, parts stores and tire stores are now taxed. It is a major step in ASA’s effort to move forward with relief from this unfair tax on independent shops. This legislation does not address taxes in previous years.
ASA is asking Texas repairers to support House Bill 429 and to continue to contact their state legislators urging them to help stop further audits of the automotive service industry until this issue is resolved.To view the letter to send to your legislator in support of this bill, visit ASA’s legislative website at www.TakingTheHill.com.
