HB 533 Summary

• Modifies Missouri income tax law to reference the Internal Revenue Code of 1986 as amended on or before January 1, 2004, requiring the director of revenue to report within 60 days on any subsequent federal tax code changes and their impacts on state revenues and taxpayers.

• Repeals sections relating to employer withholding tax compensation (section 143.261) and corporation income sourcing (sections 143.451 and 143.461), replacing them with new provisions including combined reporting requirements for affiliated groups and unitary groups of corporations.

• Establishes new section 143.434 defining affiliated groups, unitary groups, and water's edge combined reporting requirements for corporations doing business in Missouri, with provisions for intercompany transaction eliminations.

• Updates sales tax exemptions in section 144.030 by adding a new definition of "common carriers" and clarifies that the exemption for motor vehicles and trailers applies to common carriers as defined in the bill.

• Revises section 144.190 refund procedures to require taxpayers claiming refunds over $1,000 in any five-year period to demonstrate refunds were issued to original purchasers, or alternatively to file amended returns proving taxes were paid by the claiming entity rather than collected from customers; effective September 1, 2011.