JEFFERSON CITY — Senate Bill 19, sponsored by Sen. Eric Schmitt, R-Glendale, today received the governor’s stamp of approval during a bill signing ceremony in Kansas City.
The measure, which was passed by the General Assembly on April 6, will cap corporate franchise taxes paid by a company at its 2010 rate, and completely phase out the corporate franchise tax over a five-year period.
In Missouri, the corporate franchise tax is imposed on companies based on a percentage of their assets. Senate Bill 19 will limit the amount of corporate franchise taxes any business must pay to its 2010 level, freezing its rate at what it paid in the 2010 tax year. A company that moves to Missouri after 2010 will be capped at its franchise tax liability for its first full year of existence.
In addition, SB 19 would gradually reduce the corporate franchise tax rate over a five-year period until it is completely phased out — beginning in 2012 and continuing until 2016 when no corporate franchise tax would be imposed in Missouri.
This measure was one of several filed during the 2011 legislative session designed to spur job growth in Missouri. With the governor’s signature, the bill will take effect Aug. 28, 2011.
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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