BUDGET WOES LOOMING FOR MISSOURI
In 2015, Missouri legislature passed SB19. It was a corporate tax relief bill. The Fiscal Note indicated that it would result in a modest drop to the state’s revenues of no more than $15 Million dollars. But the Net corporate income collections in Missouri’s Fiscal Year 2016 is down by over $165 Million, and is projected to be more than $200 Million.
It seems that despite what we’ve seen with Kansas’ budget woes of late, Missouri is certainly poised to go down that same road already traveled by our neighbors to the West.
From that bill’s summary: “urrently, in determining what portion of a corporation’s income is taxable in Missouri, the business may use a method whereby the ratio of instate sales to total sales is multiplied by the net income. A method for determining whether the sale of tangible property are to be considered instate is already established in current law. This act specifies a process for all other sales….If it cannot be determined or reasonably approximated, that a sale occurs in this state, uch sale shall be excluded from the sales factor for corporate income taxation.”
Credit: Missouri Scout, David Drebes, Editor