HB 969 -- INCOME TAX:  INTANGIBLE ASSETS (Cooper, 120)

This bill establishes a procedure for the determination of tax
liability for purposes of corporate income tax of certain
expenses and costs related to certain intangible property when
the property is transferred to a related entity.

The bill provides specific criteria for determining if
transactional expenses and costs related to the transfer and use
of the rights to patents, trade names, trademarks, and other
intangible property incurred by a taxpayer from a related entity
are a legitimate business expense and are allowed to be deducted
in the computation of Missouri taxable income.

Any issue relevant to ascertaining the tax liability of a
taxpayer related to the deductibility of these expenses and costs
will be strictly construed against the taxing authority in favor
of the taxpayer.

FISCAL NOTE:  Total Estimated Cost on General Revenue Fund of
$86,569 in FY 2005, $0 in FY 2006, and $0 in FY 2007.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:14 am