USA
In a landmark victory for the linen, uniform and facility services industry, Texas has taken a major step to support public health and economic growth by changing how these essential businesses are taxed. Governor Greg Abbott has signed into law SB 2774/HB 1769—legislation championed by TRSA, the association representing the $50 billion national industry, as part of its proactive advocacy programme.
The new law updates the state’s tax code to reclassify linen and uniform rental companies under the ‘retail trade’ category, cutting their franchise tax rate in half—from 0.75% to 0.375%. This adjustment aligns the industry with other rental sectors, such as formalwear, which already benefit from a lower rate. The result is a more equitable tax structure that recognizes the important role TRSA members play in supporting healthcare, hospitality and emergency response across the state.
“This is a huge win for our industry,” said Kevin Schwalb, TRSA vice president of government relations. “It’s not just about tax fairness—it’s about acknowledging the key contributions our members make to protecting public health, creating local jobs and keeping Texas running.”
Schwalb noted that the passage of this legislation was the result of TRSA’s persistent advocacy and grassroots engagement. Over the past year, dozens of Texas-based TRSA members met directly with lawmakers to make the case for fairer tax treatment and greater recognition of their essential services. He recognised TRSA Board Members Theresa Garcia, COO of Division Laundry, and Roger Harris, CEO of Metro Linen, for testifying before legislative committees and playing a key role in advancing the legislation.
Economic and operational impact
The linen, uniform and facility services industry is a vital part of Texas’s economy and infrastructure. It employs over 20,000 Texans and supports major sectors like healthcare, food service and manufacturing. On average, TRSA members process more than 50,000 pounds of textiles weekly, while efficiency improvements have cut resource use by 30% over the past decade, underscoring the industry’s commitment to sustainability.
The reclassification and tax relief will have immediate and long-term benefits. With a lower tax burden, industry businesses will have greater financial flexibility to reinvest in equipment, adopt new technologies and strengthen workforce development. These tax savings can also support job creation, particularly in underserved or rural communities where expansion may have previously been out of reach. Additionally, with increased resources, companies will be better positioned to meet the growing demand for hygienic, reliable textile services across Texas.
