hb0710i-Introduced Bill Text
FIRST REGULAR SESSION
HOUSE BILL NO. 710
90TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES VAN ZANDT, GAW, CAMPBELL (Co-sponsors),
RELFORD, FROELKER, LAWSON, BENNETT, KELLY (27), KENNEDY, KISSELL AND
Read 1st time January 28, 1999, and 1000 copies ordered printed.
ANNE C. WALKER, Chief Clerk
To repeal section 147.010, RSMo 1994, relating to corporate franchise tax, and to enact in lieu
thereof one new section relating to the same subject, with an effective date.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 147.010, RSMo 1994, is repealed and one new section enacted in lieu
thereof, to be known as section 147.010, to read as follows:
147.010. 1. For the transitional year defined in subsection 4 of this section and each taxable year
beginning on or after January 1, 1980, every corporation organized [under] pursuant or subject
to chapter 351, RSMo, or [under] pursuant to any other law of this state shall, in addition to all
other fees and taxes now required or paid, pay an annual franchise tax to the state of Missouri
equal to [one-twentieth] one-twenty-fifth of one percent of the par value of its outstanding
shares and surplus if its outstanding shares and surplus exceeds [two hundred thousand] one
million dollars, or if the outstanding shares of such corporation or any part thereof consist of
shares without par value, then, in that event, for the purpose herein contained, such shares shall
be considered as having a value of five dollars per share unless the actual value of such shares
should exceed five dollars per share, in which case the tax shall be levied and collected on the
actual value and the surplus if the actual value and the surplus exceeds [two hundred thousand]
one million dollars. If such corporation employs a part of its outstanding shares in business in
another state or country, then such corporation shall pay an annual franchise tax equal to
[one-twentieth] one-twenty-fifth of one percent of its outstanding shares and surplus employed
in this state if its outstanding shares and surplus employed in this state exceeds [two hundred
thousand] one million dollars, and for the purposes of this chapter, such corporation shall be
deemed to have employed in this state that proportion of its entire outstanding shares and surplus
that its property and assets employed in this state bears to all its property and assets wherever
located. A foreign corporation engaged in business in this state, whether under a certificate of
authority issued [under] pursuant to chapter 351, RSMo, or not, shall be subject to this section.
Any corporation whose outstanding shares and surplus as calculated above does not exceed [two
hundred thousand] one million dollars shall state that fact on a form prescribed by the secretary
2. This law shall not apply to corporations not organized for profit, nor to corporations organized
[under] pursuant to the provisions of chapter 349, RSMo, nor to express companies, which now
pay an annual tax on their gross receipts in this state, nor to insurance companies, which pay an
annual tax on their premium receipts in this state, nor to electric and telephone corporations
organized [under] pursuant to chapters 351, RSMo, and 392, RSMo, prior to January 1, 1980,
which have been declared tax exempt organizations [under] by section 501(c) of the Internal
Revenue Code of 1986, nor for taxable years beginning after December 31, 1986, to banking
institutions subject to the annual franchise tax imposed by sections 148.010 to 148.110, RSMo;
but bank deposits shall be considered as funds of the individual depositor left for safekeeping and
shall not be considered in computing the amount of tax collectible [under] prescribed by the
provisions of this chapter.
3. A corporation's "taxable year" for purposes of this chapter shall be its taxable year as provided
in section 143.271, RSMo.
4. A corporation's "transitional year" for the purposes of this chapter shall be its taxable year
which includes parts of each of the years 1979 and 1980.
5. The franchise tax payable for a corporation's transitional year shall be computed by multiplying the amount otherwise due for that year by a fraction, the numerator of which is the number of
months between January 1, 1980, and the end of the taxable year and the denominator of which is
twelve. The franchise tax payable, if a corporation's taxable year is changed as provided in
section 143.271, RSMo, shall be similarly computed [under] as required by regulations
prescribed by the secretary of state.
6. All franchise reports and franchise taxes shall be returned to the secretary of state who shall
transfer such taxes to the director of revenue. All checks and drafts remitted for payment of
franchise taxes shall be made payable to the director of revenue.
7. Section 32.057, RSMo, shall apply to the secretary of state as equally as it applies to the
director of revenue and the secretary of state shall maintain the confidentiality of all franchise tax
reports returned to him or her. Such reports, however, may be made available at any time to the
director of revenue and the director of revenue will maintain their confidentiality.
Section B. Section A of this act shall become effective on April 1, 1999, and shall apply to all
taxable years beginning after March 31, 1999.
Missouri House of