Gov. Nixon signs bill clarifying application of new division of income tax law
Governor Jay Nixon today signed legislation, supported by Associated Industries of Missouri (AIM), that clarifies a law passed in 2013 applies to ALL Missouri corporations.
A 2013 change in Missouri’s law allowed a new formula for determining how much income is taxed in Missouri. Originally, the new method was allowed to all corporations, according to a regulation issued by the Missouri Department of Revenue. But some companies that tried to use the new formula were subsequently not allowed by the Department to use the new formula – in fact, any company with less than 100% of their income from the sale of tangible personal property were denied the ability to use the new formula.
The new law clarifies the formula is available to all corporations, including those that derive income from the sale of services and intangibles. Although the original bill did not exclude such corporations, the clarification specifically addresses how to report such income under the new formula.
“This law clarifies the original intent of the law passed in 2013 and we believe finally allows the new formula to be used by any company as was intended in 2013,” said Ray McCarty, president of AIM.
This is the second year for the legislation, as the language was vetoed in six different bills last year.
Here is a link to the bill: