Page 5 2025 Economic Impact Study TAXES AND PAYROLL Employee compensation due to new vehicle retailing industry Estimated tax revenue generation In 2025, the average Texas dealership paid an estimated $8.4 million to its employees (including fringe benefits). Including both direct and indirect sources, the new vehicle retailing industry resulted in more than $20.3 billion of total compensation to Texas residents! Total compensation at new car dealerships: $12.2 billion In 2025, new franchised automobile dealerships in Texas collected or paid more than $7.6 billion in estimated state and local taxes, an average of $5,256,000 per dealership. Federal payroll taxes for the industry exceeded $3 billion. Total state and local taxes collected or paid by new car dealerships: $7.6 billion Estimated Industry Total Direct Indirect TOTAL Payroll $11,121,500,000 $7,451,405,000 $18,572,905,000 Fringe Benefits $1,080,250,000 $723,767,500 $1,804,017,500 TOTAL $12,201,750,000 $8,175,172,500 $20,376,922,500 Average Dealership Payroll Direct Payroll $7,670,000 Fringe Benefits $745,000 TOTAL $8,415,000 Tax Category Average Per Dealer Industry Total State sales tax collected* $4,850,000 $7,032,500,000 Local property taxes $158,000 $229,100,000 Other state and local taxes $248,000 $359,600,000 Texas Total $5,256,000 $7,621,200,000 Federal Payroll Taxes $2,080,000 $3,016,000,000 * Includes motor vehicles sales taxes. DEALERS’ CHOICE 44
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