Senate lawmakers have approved legislation that will allow Missouri corporations more options for filing taxes by clarifying the intent of legislation passed in 2013. Senate Bill 19, sponsored by Sen. Will Kraus, could provide significant savings for many Missouri employers who sell products or services outside of Missouri. Sen. Kraus is a Republican from Lee’s Summit.
The tax benefit was intended to apply to all employers in legislation passed in 2013. However when enforcing the law, the Missouri Department of Revenue greatly limited the types of businesses that could take advantage of the relief – allowing it only on sales of tangible goods. 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.
“This tax option has been a long-time coming for Missouri employers,” said Tracy King, Missouri Chamber vice president of governmental affairs. “The Missouri Chamber’s tax council generated the idea for the law prior to the 2013 Legislative Session. We are now in our third legislative session trying to secure the benefit for all employers. That always was the intention of our tax council and the Missouri General Assembly. We just need to bring the DOR on the same page.”
The Missouri Senate passed the bill on a vote of 28-2. Rep. Caleb Jones, a Republican from California, is sponsoring a similar bill, House Bill 321. It has been approved by a House committee and awaits debate by the full House.
Full implementation of the bill is good for Missouri’s economy.
“Providing this tax option helps businesses that manufacture products in Missouri for sales outside the state grow production in Missouri rather than shift the jobs outside our borders in search of more advantageous tax policies,” said King.
The Missouri Chamber of Commerce and Industry (www.mochamber.com) was founded in 1923 and is the largest business organization in Missouri, representing almost 3,000 employers, providing more than 425,000 jobs for Missourians.