SB 19 - Corporate Franchise Tax Phase-Out Summary

• Repeals and replaces section 147.010, RSMo, establishing a phased elimination of Missouri's corporate franchise tax between 2012 and 2016

• For tax years 2012-2015, gradually reduces the franchise tax rate while maintaining a $10 million threshold: 2012 rate of 1/37%, 2013 rate of 1/50%, 2014 rate of 1/75%, and 2015 rate of 1/150%

• Eliminates the corporate franchise tax entirely for all taxable years beginning January 1, 2016 and thereafter

• Caps tax liability for corporations from 2011-2015 at the amount owed for tax year 2010, with special provisions for newly formed corporations

• Exempts from franchise tax corporations not organized for profit, insurance companies, mutual insurance companies, savings and loan associations, and certain other specified entity types