Legislators in the House and Senate are working to clarify a law that gives Missouri corporations more options during tax filing season.
Companies that operate across state lines must decide how they report that income across their various state tax filings. It’s a practice called corporate apportionment and involves various formulas to determine tax liability in each state.
In 2012, the Missouri Chamber’s tax council generated the idea for a new state law that would give corporations another alternate formula to consider when filing their tax returns. The idea received widespread support from Missouri lawmakers and became law in 2013.
But since then, the Missouri Department of Revenue has greatly limited the kinds of corporations that can access the new option in the 2013 law.
Last year, the General Assembly passed language to ensure all companies can utilize this new statute—whether they manufacture items or offer services or sell intangible products. But that proposal—contained in several bills—was vetoed by Gov. Jay Nixon.
Now, Missouri legislators are trying again. House Bill 321 and Senate Bill 19 are new bills that would address this problem.
On March 3, the Missouri House Ways and Means Committee voted to pass House Bill 321, sponsored by Rep. Caleb Jones, a Republican from California.
A week earlier, on Feb. 25, the full Missouri Senate gave first round approval to Senate Bill 19, sponsored by Sen. Will Krause, a Republican from Lee’s Summit.
“The Missouri Chamber was very active during the passage the corporate apportionment law in 2012 and it was always the intent of the legislature to have this tax new filing option be open to all Missouri employers,” said Tracy King, Missouri Chamber vice president of governmental affairs. “It’s a positive step to see both the House and Senate working to make this a priority. On behalf of the business community, we thank them for their work.”
For more information, contact King at email@example.com or by phone at 573-634-3511.