Industry

ASA wants Texas to make tax law fair for auto repair shops

Order Reprints

The Automotive Service Association (ASA) testified before the Ways and Means Commission in Austin, Texas, June 5, 2012, regarding an inequity in the current Texas Franchise Tax code.

Denise Caspersen, ASA’s Collision Division manager; Charles Parker, executive director of ASA-Texas; John Firm, AAM, president of ASA-Texas and owner of Firm Automotive in Fort Worth; and John Miller, owner of Freedom Automotive in Stafford, were all present at the hearing.

ASA members from Texas who testified included Danny Sullivan, owner of Sullivan Advanced Auto Care in Kingwood.

The bill, if passed, would allow automotive repair shops to be taxed the same amount that dealers, parts stores and tire stores are now taxed.

The independently owned automotive repair and collision businesses in Texas are being denied equal treatment under the law,” said Parker. “Automotive repair and collision shops owned and operated by new or used car dealerships are taxed at half the rate used to tax the independently owned businesses doing identical work. This is justified in the tax code by classifying dealership sales as ‘retail’ and allowing their service and repair business to be included under that banner.

“Furthermore, repair shops operated by tire companies (NTW, Firestone, Goodyear), parts stores (Pep Boys) and mass-merchandisers (Sears, Wal-Mart, Target) are also charged at half the rate paid by independent repair shops. We should not be taxed at a rate different than a business performing an identical service. We should not be denied the true cost of our product by disallowing our skilled labor.”

For additional information visit ASA’s legislative website at www.TakingTheHill.com.

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