AUSTIN, Texas (June 19, 2013) — Texas Gov. Rick Perry has signed Substitute House Bill 500, which contains a change to Texas franchise tax law that greatly benefits independent auto repairers.
Under previous law, auto repair and service operations performed by independent garages were taxed at twice the rate of the same services performed by new and used car dealerships. The state classified new and used car dealerships as "retail" operations, but not independent repair operations.
The new law reclassifies independent repair shops as retail trade—cutting their tax bill in half and giving them a level playing field with car dealerships.
The Automotive Service Association (ASA) thanked its Texas members for contacting their state legislators in support of the bill. To see the bill in its entirety, go to the ASA's legislative website.