MO SB18

Repeal and replace section 147.010, RSMo regarding corporate franchise tax rates and thresholds.

For taxable years beginning January 1, 2011 and after, annual franchise tax equals one-thirtieth of one percent of outstanding shares and surplus if exceeding $10 million, but cannot exceed the corporation's tax liability for the year ending December 31, 2010.

For corporations not in existence or doing business in Missouri as of December 31, 2010, annual tax liability for any subsequent year cannot exceed the tax liability for the first full taxable year of existence.

Maintain existing exemptions for non-profit corporations, insurance companies, banking institutions, savings and loan associations, and other specified entity types.

Direct the Department of Revenue to maintain confidentiality of franchise tax reports and honor all existing agreements between taxpayers and the department.