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Franchise Tax Equity Legislation Hearing Held in Texas

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March 20, 2013—A hearing was held recently for Texas Franchise legislation, Texas House Bill 71.

If passed, the bill would allow automotive repair shops in Texas to be taxed the same rate that dealers, parts stores and tire stores are now taxed.

Currently, automotive service and collision repair shops owned and operated by new or used car dealerships are taxed at half the rate used to tax independent automotive repair facilities.

Texas state tax code classifies dealership sales, as well as their service and repair business, as “retail.”

The Automotive Service Association of Texas (ASA-Texas) has sent a letter to legislators urging them to support this bill, and several ASA-Texas members took part in the recent hearing.

To contact Texas legislators, visit TakingTheHill.com.

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