The Missouri House of Representatives Monday gave final approval to Senate Bill 19, legislation designed to clarify that laws allowing companies an additional choice of formulas used to divide their income between states are available to all regular corporations.
By a margin of 153-4, the House voted to move the bill to the desk of Governor Nixon, one session after the governor vetoed the legislation.
The bill will ensure Missouri companies headquartered in the state don’t face double taxation.
Bill sponsor Rep. Caleb Jones (R-California) tells the Associated Press that making sure businesses can voluntarily calculate taxes this way would keep businesses currently based in Missouri in the state.
Earlier this session, AIM president Ray McCarty told legislators at a hearing on the bill that the issue was not helped by direction provided by the Missouri Department of Revenue.
“While the DOR has issued a regulation that the new formula is available to all regular corporations, they have sent letters to some companies saying they believe it only applies if the taxpayer ONLY has income from sales of tangible personal property,” said McCarty. “This clarifies and corrects this misapplication of the existing tax law.”