Missouri 2022 Regular Session

Missouri Senate Bill SB1212

Introduced

2/28/22

Refer

3/29/22

Caption

Modifies provisions relating to the apportionment of income for financial institutions

Impact

One major implication of SB1212 is that it specifies mechanisms for allocating income, which could significantly impact how financial institutions calculate their tax burdens. By requiring that a corporation's taxable income includes all income derived from sources within Missouri, the bill seeks to close loopholes that may allow for reduced state tax revenues from finance-based businesses operating in the state. This change aims to align the state's regulations with practices seen in other jurisdictions, potentially increasing compliance and revenue outcomes for Missouri.

Summary

Senate Bill 1212 aims to amend the existing tax code applicable to financial institutions in Missouri by repealing section 143.455 and enacting two new sections that detail the apportionment of income. This change is geared towards providing clarity and establishing a fair methodology for determining the taxable income of corporations based on income derived from sources within the state. The new sections define critical terms that influence how financial institutions allocate and apportion their earnings, thus affecting the overall tax liability these entities bear in Missouri.

Contention

Noteworthy points of contention surround the potential impacts this bill can have on corporate conduct and financial markets within Missouri. Supporters argue that a more rigorous and clear apportionment method will mitigate unfair advantages some corporations might exploit under the current law. However, opponents express concerns that these changes could lead to increased operational costs for financial institutions, which might stifle competition and innovation. Discussions suggest that the implications of the bill could ripple through various sectors that rely heavily on financial services, consequently altering existing economic dynamics.

Latest SB1212 Activity

Companion Bills

No companion bills found.

Similar Bills

KS HB2231

Providing an additional personal exemption for head of household tax filers and increasing the personal exemption for certain disabled veterans for purposes of income tax, modifying the definition of household income related to increased property tax homestead refund claims, providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, providing for the apportionment pursuant to the three-factor test of a manufacturer who sells alcoholic liquor, requiring the use of single sales factor pursuant to the multistate tax compact, establishing deductions from income when using the single sales factor and receipts factor, providing for the decrease in corporate income tax rates, determining when sales other than tangible personal property are made in the state, excluding sales of a unitary business group of electric and natural gas public utilities, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers.

KS HB2796

Providing for the apportionment of business income by the single sales factor and requiring the use of single sales factor pursuant to the multistate tax compact.

KS SB507

Providing for the apportionment of business income by the single sales factor and requiring the use of single sales factor pursuant to the multistate tax compact.

KS HB2110

Allowing single sales factor apportionment of business income for certain taxpayers.

KS HB2336

Providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, deductions from income when using the single sales factor and receipts factor, the decrease in corporate income tax rates determining when sales other than tangible personal property are made in the state and excluding sales of a unitary business group of electric and natural gas public utilities.