SB 1059 Modifies the taxation of income derived from certain transactions involving intellectual property
Sponsor:Bartle Co-Sponsor(s)
LR Number:3844S.01I Fiscal Note:3844-01
Committee:Ways and Means
Last Action:01/27/04 - Hearing Conducted S Ways & Means Committee Journal page:S158
Effective Date:August 28, 2004
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Current Bill Summary

SB 1059 - This act establishes a procedure for the determination of tax liability for purposes of corporate income tax of certain expenses and costs related to certain intangible property when the property is transferred to a related entity. The act provides specific criteria for determining if transactional expenses and costs related to the transfer and use of the rights to patents, trade names, trademarks, and other intangible property incurred by a taxpayer from a related entity are a legitimate business expense and are allowed to be deducted in the computation of Missouri taxable income.

The act establishes a test to determine that the transaction or transfer in question was not primarily intended to avoid tax. The test is a five part test, wherein satisfaction of two parts of the test will lead to the conclusion that the transaction is not a tax avoidance scheme.

This act is identical to HB 969 (2004).