For corporations that operate in multiple states, tax season can be a challenging time as they must decide how to report income across various state tax filings.
A bill passed by the Missouri General Assembly would help these companies, giving them more options as they file tax returns. The bill is Senate Bill 19, sponsored by Sen. Will Kraus, a Republican from Lee’s Summit. The bill received bipartisan support in the House on April 21, passing 153-4, as it was sent to Gov. Jay Nixon for consideration.
The idea started in 2012, when the Missouri Chamber’s tax council generated a proposal for a new state law that would give corporations an 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 contained in the 2013 law.
Last year, the General Assembly passed language to ensure all companies can utilize this new statute—whether they manufacture items, offer services or sell intangible products. But that proposal—contained in several bills—was vetoed by Gov. Jay Nixon.
This year, the legislature sent Gov. Nixon a bill containing only the corporate tax language. Lawmakers and bill supporters hope this will convince the governor to sign the bill this year.
For more information, contact Tracy King, Missouri Chamber vice president of governmental affairs, at email@example.com or by phone at 573-634-3511.