AUSTIN, Texas (May 2, 2013) — The Automotive Service Association (ASA) is asking its Texas members to write their state legislators in support of Substitute House Bill 500, also known as the Texas Franchise Tax Bill.
Currently under Texas law, independent auto repair and collision shops are taxed at double the rate of the same facilities operated by new or used car dealerships. The Texas Franchise Tax Bill would reclassify independent auto repair facilities as retail establishments under the law, granting them the lower tax rate.
"This legislation is critical in helping the independent repair shops of Texas by correcting the unfair taxation," said Charles Parker, executive director of ASA-Texas, at a recent hearing on the bill.
The Texas Franchise Tax Bill has been placed on the General State Calendar, meaning the legislature could consider it soon. The ASA hopes to see it passed before the Texas legislature adjourns in late May.
For more information on the bill and how to contact legislators, go to the ASA's legislative website and click on "View Current Alerts."