The Texas State House Committee on Ways and Means unanimously passed House Bill 1769 due to the testimony given by Theresa Garcia, the COO of Division Laundry & Cleaners Inc., San Antonio, TX, in support of HB 1769. This bill, introduced by State Rep. Drew Darby (R-District 72), would cut the franchise tax for the linen, uniform and facility services industry in Texas to 0.375% from the current 0.75%.
Garcia, a member of the TRSA Board of Directors, explained how the current classification system unfairly burdens companies that rent personal protective equipment (PPE) to first responders, healthcare workers and patients while companies that rent tuxedos get the lower rate. House Bill 1769 seeks to create a more equitable tax environment, allowing businesses to thrive and continue contributing to the Texas economy.
Founded in 1939, Division Laundry has grown to become the largest minority-owned commercial laundry in Texas, serving military hospitals, healthcare systems and hotels. Garcia stressed that the proposed bill would support the continued growth and success of such businesses, ensuring they can maintain their high standards and expand their services.
Garcia’s testimony is continuing the momentum from the hearing in the Texas Senate Committee on Finance, where a companion bill was passed unanimously by the committee.
“There is still a long way to go to get this legislation across the finish line, but this hearing is definitely a step in the right direction,” said Kevin Schwalb, TRSA’s vice president of government relations.
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