Independent Auto Body Shop Owners Finally Get a Fair Share

Austin, TX has seen its fair share of focus as of late, but a bill was passed last week that could interest the independent auto body shop owner.  The Texas Franchise Tax legislation was included in Substitute House Bill 500.  That bill was then presented and signed by Texas Governor Rick Perry.  What was in effect was automotive service shops owned and operated by new or used car dealerships, were being taxed at half the rate used to tax independent automotive repair facilities.  Sounds pretty fair right?  Of course it doesn’t.  That’s why we throw fruits, vegetables, and small auto parts at the system. With logic finally subsiding, the new law reclassifies independent repair shops as retail trade—cutting their tax bill in half and giving them a level playing field with car dealerships.  The bill states that “the activities classified as Industry Group 753 of the 1987 Standard Industrial Classification Manual published by the federal Office of Management and Budget fall under Retail Trade.”  This bill was highly supported by the Automotive Service Association (ASA) and ASA-Texas in which they thanked their members for rallying around Substitute H.B. 500 and contacting their state legislators.  The ASA has a link to their legislative website at www.TakingTheHill.com to view the legislation in its entirety. Collision Websites proudly supports the Automotive Service Association, www.asashop.org, and your auto body shop.  To view more on Collision Websites and how we can help develop your online design and web presence for your auto body shop, visit us here: https://collisionwebsites.com Sources: http://www.asashop.org/blog/texas-governor-signs-franchise-tax-bill/ http://www.fenderbender.com/FenderBender/June-2013/Texas-Governor-Signs-Franchise-Bill/