For corporations that operate in multiple states, tax season can be a challenging time as they decide how to report income across various state tax filings.
A law signed by the governor on May 6 would help these companies, giving them more options as they file tax returns.
“Every taxpayer in the state of Missouri knows how difficult it can be to file an annual tax return. However, for corporations that do business across state lines, the filing complexity only multiplies,” said Daniel P. Mehan, Missouri Chamber president and CEO. “This law makes Missouri a more business-friendly state by providing more companies better choices when they report their income to the government each year.”
Senate Bill 19 was sponsored by Sen. Will Kraus, a Republican from Lee’s Summit. The law originated in 2012 from the business policy stakeholders on the Missouri Chamber’s tax council. The council generated a proposal 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. This year’s Senate Bill 19 ensures all companies can utilize this new statute—whether they manufacture items, offer services or sell intangible products. The bill received bipartisan support in the General Assembly.
“This bill makes it clear that the Missouri General Assembly intended for all companies to be able to access the tax filing options passed in 2013,” Mehan said. “We thank the General Assembly for bringing clarity to this issue during the 2015 session.”