Franchise Tax Phase Out — SB 19, sponsored by Senator Eric Schmitt, St. Louis County, will gradually (over a five-year period) eliminate a tax that applies to more than 3,000 businesses currently operating in Missouri. The bill implements a phase-out of Missouri’s franchise tax on company assets, such as buildings and inventory. In addition, the bill caps corporate franchise tax liabilities at the amount of each corporation’s tax liability for the 2010 tax year. The Governor has already signed this measure.
The franchise tax has been in existence since 1917 and has been reduced by the legislature over the years. The bill approved by the Missouri General Assembly will further reduce the tax each year until it is phased out entirely in 2016.
Reducing Small Business Regulation & Taxes — HB 45, sponsored by Representative Denny Hoskins, Johnson County, will modify provisions of the “Big Government Get Off My Back Act,” which is designed to provide tax relief to small businesses in Missouri. The bill will only apply to businesses with fewer than 50 employees. Previously, the act applied to businesses with fewer than 25 employees.
The legislation also requires that any federal mandates on these businesses must first be approved by the General Assembly. In addition, it specifies that any federal mandate compelling the state to enact, enforce, or administer a federal regulatory program must be subject to authorization through appropriation or statutory enactment. The bill also extends, for an additional year, a moratorium on new regulations and fees that impact small businesses.
Another provision in HB 45 authorizes an income tax deduction for small businesses that create new, full-time jobs with annual salaries that meet the county’s average wage. Under the bill, a small business would be able to deduct $10,000 for each full-time job created or $20,000 per new job — if the employer offers health insurance for the new employees and pays at least half of the premiums for such insurance.
The Governor has until July 14 to take action on all bills forwarded by the House and Senate.
It was really good to see everyone at the Black River Electric Annual Picnic in Fredericktown on Saturday. It was also an honor to attend the ceremony at Greenville Elementary School On Friday. Both Greenville and Williamsville Elementary Schools were awarded grants through the Rural Development Community Facilities Program. The grants will fund new playground equipment for the schools.