JEFFERSON CITY — On April 6, the House of Representatives gave final approval to Senate Bill 19, sponsored by Sen. Eric Schmitt, R-Glendale. With the governor’s signature, the legislation would cap corporate franchise taxes for companies at their 2010 rate, and completely phase out the corporate franchise tax over a five-year period.
The corporate franchise tax is imposed on companies based on a percentage of their assets. The bill would limit the amount of corporate franchise taxes any corporation must pay to their 2010 level, essentially freezing their rate at what they paid in the 2010 tax year. Companies that move to Missouri after 2010 would be capped at their franchise tax liability for their first full-year of existence.
The bill would also gradually reduce the corporate franchise tax rate over a five-year period until it is completely phased out. The phase-out would begin in 2012 and would continue until 2016 when no corporate franchise tax would be imposed in the state.
For more information about the Missouri Senate, visit www.senate.mo.gov. To contact the Senate Newsroom, call (573) 751-3824 or e-mail newsroom@senate.mo.gov.
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