TRSA Treasurer and Metro Linen, McKinney, TX, President and CEO Roger Harris testified in front of the Texas State Senate Committee on Finance to advance legislation that would redefine the linen, uniform and facility services industry as retail trade as it pertains to the Texas Franchise Tax.
Currently, the industry is taxed at the wholesale rate of 0.5 percent. TRSA has been working with Texas State Sen. Adam Hinojosa (R-District 27) to introduce SB 2774. The legislation would allow the industry to pay the lower retail rate of 0.375 percent.
“Texas needs to level the playing field and allow industry that rents hospital barrier gowns to protect healthcare workers the same lower tax rate as formal wear rental,” said Sen. Hinojosa during his comments to the committee outlining the legislation.
Left to Right: Texas State Sen. Adam Hinojosa (R-District 27) and Metro Linen President and CEO Roger Harris
Harris discussed the industry and noted that, “Through our rental programs, millions of Texans rely on our industry every day for safe and hygienically clean uniforms, garments, hospital barrier gowns and linens, restaurant linens, shop towels, walk-off mats, and other products.”
Harris went on to say that, “Allowing our industry to file at the lower rate would level an uneven playing field and free up much needed capital, allowing the industry to expand.”
A committee hearing is the first step in the legislative process. After the hearing, the committee will vote on whether to pass the bill and move it to the Senate floor.
“We are excited about the committee hearing, but there is a long way to go,” said Kevin Schwalb, TRSA’s vice president of government relations. “In Texas, we have introduced legislation in both the State House (HB 1769) and the State Senate (SB 2774) to increase the chances of getting the legislation past the finish line. We would not have gotten this far if we did not have 30 people attend the Texas Legislative Day a few weeks ago; this action is a direct result of the efforts from the GMs from across Texas.”
TRSA is continuing to push for action in the Texas State House.
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