Inequities exist in Texas franchise laws for automotive repairers
Jan. 1, 2020
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 ra
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.
ASA is asking Texas repairers to contact their state
legislators and urge them to help stop further audits of the
automotive service industry until this issue is resolved.
To view the letter or to easily send a letter to your
Texas legislator, visit ASA’s legislative website at
www.TakingTheHill.com. Click on the "View Current Alerts."
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