MO HB1029

Repeals and replaces section 143.451 of Missouri Revised Statutes regarding division of interstate income for corporate income taxation.

Adds a new election method (subdivision 3) allowing corporations to compute Missouri taxable income by dividing sales occurring in Missouri by total sales, rather than using the existing method of adding wholly in-state sales to one-half of partially in-state sales.

Defines "in this state" for tangible property sales under the new method as transactions where the purchaser's destination point is in Missouri, determined without regard to FOB point or other sale conditions.

Establishes special rules for investment funds service corporations, allowing them to apportion qualifying sales based on the residence of fund shareholders in Missouri rather than traditional apportionment methods.

Applies the new apportionment method to investment funds service corporations providing management, distribution, or administration services to investment companies, calculated by multiplying qualifying sales by a fraction representing Missouri shareholders' shares divided by total shareholders' shares.