JEFFERSON CITY — The Senate today approved the second bill of the session to move on to the House, Senate Bill 19, sponsored by Sen. Eric Schmitt, R-Glendale. 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 beginning Jan. 1, 2012, over a five-year period until it is completely phased out. Effective Jan. 1, 2016, no corporate franchise tax would be imposed.
Senate Bill 19 now moves to the House of Representatives for consideration.
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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