Inequities exist in Texas franchise laws for automotive repairers

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."