Previous Issues | Current Headlines | Point of View | Obituaries

Governor Signs Texas Auto Repair Tax Fix

Texas Gov. Rick Perry has signed into law a bill including the Texas Franchise Tax legislation supported by ASA and ASA-Texas. The measure addresses a previous inequality in how automotive service and collision repair businesses were taxed in the state.

According to ASA, service and collision repair shops owned and operated by new or used car dealerships have been taxed at half the rate used to tax independent auto repair facilities doing the same work. That’s because the tax code in Texas classified dealership sales as “retail” and allowed their service and repair businesses to be included under that banner. Independent auto repairers did not had the same opportunity.

The Texas Franchise Tax legislation, which was included in Substitute H.B. 500, classified all of these auto service and collision repair businesses as retail, thereby addressing the inequity.

We encourage you to add your comments below concerning this article.

Back To Story List