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.
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