Missouri Revised Statutes
Chapter 147
Corporation Franchise Tax
←147.120
Section 147.010.1
147.020→
August 28, 2015
Annual franchise tax, rate--exceptions.
147.010. 1. For the transitional year defined in subsection 4 of
this section and each taxable year beginning on or after January 1, 1980,
but before January 1, 2000, every corporation organized pursuant to or
subject to chapter 351 or pursuant to any other law of this state shall, in
addition to all other fees and taxes now required or paid, pay an annual
franchise tax to the state of Missouri equal to one-twentieth of one
percent of the par value of its outstanding shares and surplus if its
outstanding shares and surplus exceed two hundred thousand dollars, or if
the outstanding shares of such corporation or any part thereof consist of
shares without par value, then, in that event, for the purpose contained in
this section, such shares shall be considered as having a value of five
dollars per share unless the actual value of such shares exceeds five
dollars per share, in which case the tax shall be levied and collected on
the actual value and the surplus if the actual value and the surplus exceed
two hundred thousand dollars. If such corporation employs a part of its
outstanding shares in business in another state or country, then such
corporation shall pay an annual franchise tax equal to one-twentieth of one
percent of its outstanding shares and surplus employed in this state if its
outstanding shares and surplus employed in this state exceed two hundred
thousand dollars, and for the purposes of sections 147.010 to 147.120, such
corporation shall be deemed to have employed in this state that proportion
of its entire outstanding shares and surplus that its property and assets
employed in this state bears to all its property and assets wherever
located. A foreign corporation engaged in business in this state, whether
pursuant to a certificate of authority issued pursuant to chapter 351 or
not, shall be subject to this section. Any corporation whose outstanding
shares and surplus as calculated in this subsection does not exceed two
hundred thousand dollars shall state that fact on the annual report form
prescribed by the secretary of state. For all taxable years beginning on
or after January 1, 2000, but ending before December 31, 2009, the annual
franchise tax shall be equal to one-thirtieth of one percent of the
corporation's outstanding shares and surplus if the outstanding shares and
surplus exceed one million dollars. Any corporation whose outstanding
shares and surplus do not exceed one million dollars shall state that fact
on the annual report form prescribed by the director of revenue. For
taxable years beginning on or after January 1, 2010, but before December
31, 2011, the annual franchise tax shall be equal to one-thirtieth of one
percent of the corporation's outstanding shares and surplus if the
outstanding shares and surplus exceed ten million dollars. For all taxable
years beginning on or after January 1, 2010, but before December 31, 2015,
any corporation whose outstanding shares and surplus do not exceed ten
million dollars shall state that fact on the annual report form prescribed
by the director of revenue. For all taxable years beginning on or after
January 1, 2011, but before December 31, 2015, a corporation's annual tax
liability under this chapter shall not exceed the amount of annual
franchise tax liability of such corporation for the taxable year ending on
or before December 31, 2010. If the corporation had no annual franchise
tax liability under this chapter for the taxable year ending on or before
December 31, 2010, because such corporation was not in existence or doing
business in Missouri, the annual franchise tax for the first taxable year
in which such corporation exists shall be determined by applying the
applicable rate of tax provided under the provisions of this subsection to
the corporation's outstanding shares and surplus if the outstanding shares
and surplus exceed ten million dollars, but in no case shall such
corporation's tax liability for any subsequent taxable year exceed the
amount of annual franchise tax liability of such corporation for the first
full taxable year such corporation was in existence or doing business in
Missouri. For taxable years beginning on or after January 1, 2012, the
annual franchise tax shall be equal to the percentage rate prescribed in
this subsection for the corresponding taxable year of the corporation's
outstanding shares and surplus if the outstanding shares and surplus exceed
the corresponding minimum threshold amount prescribed as follows:
(1) For tax year 2012, the rate shall be one-thirty-seventh of one
percent and the threshold amount shall be ten million dollars;
(2) For tax year 2013, the rate shall be one-fiftieth of one percent
and the threshold amount shall be ten million dollars;
(3) For tax year 2014, the rate shall be one-seventy-fifth of one
percent and the threshold amount shall be ten million dollars;
(4) For tax year 2015, the rate shall be one-hundred-fiftieth of one
percent and the threshold amount shall be ten million dollars;
(5) For tax years beginning on or after January 1, 2016, no annual
franchise tax shall be imposed under this section.
2. Sections 147.010 to 147.120 shall not apply to corporations not
organized for profit, nor to corporations organized pursuant to the
provisions of chapter 349, nor to express companies, which now pay an
annual tax on their gross receipts in this state, nor to insurance
companies, which are subject to an annual tax on their premium receipts in
this state, nor to state, district, county, town and farmers' mutual
companies now organized or that may be hereafter organized pursuant to any
of the laws of this state, organized for the sole purpose of writing fire,
lightning, windstorm, tornado, cyclone, hail and plate glass and mutual
automobile insurance and for the purpose of paying any loss incurred by any
member by assessment, nor to any mutual insurance corporation not having
shares, nor to a company or association organized to transact business of
life or accident insurance on the assessment plan for the purpose of mutual
protection and benefit to its members and the payment of stipulated sums of
moneys to the family, heirs, executors, administrators or assigns of the
deceased member, nor to foreign life, fire, accident, surety, liability,
steam boiler, tornado, health, or other kind of insurance company of
whatever nature coming within the provisions of section 147.050 and doing
business in this state, nor to savings and loan associations and domestic
and foreign regulated investment companies as defined by Section 170 of the
Act of Congress commonly known as the Revenue Act of 1942, nor to electric
and telephone corporations organized pursuant to chapter 351 and chapter
392 prior to January 1, 1980, which have been declared tax-exempt
organizations pursuant to Section 501(c) of the Internal Revenue Code of
1986, nor for taxable years beginning after December 31, 1986, to banking
institutions subject to the annual franchise tax imposed by sections
148.010 to 148.110; but bank deposits shall be considered as funds of the
individual depositor left for safekeeping and shall not be considered in
computing the amount of tax collectible pursuant to the provisions of
sections 147.010 to 147.120.
3. A corporation's taxable year for purposes of sections 147.010 to
147.120 shall be its taxable year as provided in section 143.271.
4. A corporation's transitional year for the purposes of sections
147.010 to 147.120 shall be its taxable year which includes parts of each
of the years 1979 and 1980.
5. The franchise tax payable for a corporation's transitional year
shall be computed by multiplying the amount otherwise due for that year by
a fraction, the numerator of which is the number of months between January
1, 1980, and the end of the taxable year and the denominator of which is
twelve. The franchise tax payable, if a corporation's taxable year is
changed as provided in section 143.271, shall be similarly computed
pursuant to regulations prescribed by the director of revenue.
6. All franchise reports and franchise taxes shall be returned to the
director of revenue. All checks and drafts remitted for payment of
franchise taxes shall be made payable to the director of revenue.
7. Pursuant to section 32.057, the director of revenue shall maintain
the confidentiality of all franchise tax reports returned to the director.
8. The director of the department of revenue shall honor all existing
agreements between taxpayers and the director of the department of revenue.
(RSMo 1939 § 5113, A.L. 1943 p. 410 § 135, A.L. 1969 4th Ex. Sess.
S.B. 3, A.L. 1979 H.B. 773, A.L. 1981 H.B. 767, A.L. 1986 H.B.
1195, A.L. 1987 H.B. 349, A.L. 1988 H.B. 1232, A.L. 1999 H.B.
516, A.L. 2009 H.B. 191 merged with H.B. 577, A.L. 2011 S.B. 19)
Prior revisions: 1929 § 4641; 1919 § 9836
(2015) Only prerequisite for tax liability under section is whether
the corporation is engaged in business in this state; whether a
foreign corporation engages in business directly or indirectly
through a wholly-owned limited partnership is immaterial.
Southwestern Bell Telephone Company v. Director of Revenue, 454
S.W.3d 871 (Mo.banc).
2009
2000
2009
147.010. 1. For the transitional year defined in subsection 4 of this
section and each taxable year beginning on or after January 1, 1980, but
before January 1, 2000, every corporation organized pursuant to or subject to
chapter 351 or pursuant to any other law of this state shall, in addition to
all other fees and taxes now required or paid, pay an annual franchise tax to
the state of Missouri equal to one-twentieth of one percent of the par value
of its outstanding shares and surplus if its outstanding shares and surplus
exceed two hundred thousand dollars, or if the outstanding shares of such
corporation or any part thereof consist of shares without par value, then, in
that event, for the purpose contained in this section, such shares shall be
considered as having a value of five dollars per share unless the actual
value of such shares exceeds five dollars per share, in which case the tax
shall be levied and collected on the actual value and the surplus if the
actual value and the surplus exceed two hundred thousand dollars. If such
corporation employs a part of its outstanding shares in business in another
state or country, then such corporation shall pay an annual franchise tax
equal to one-twentieth of one percent of its outstanding shares and surplus
employed in this state if its outstanding shares and surplus employed in this
state two hundred thousand dollars, and for the purposes of sections 147.010
to 147.120, such corporation shall be deemed to have employed in this state
that proportion of its entire outstanding shares and surplus that its
property and assets employed in this state bears to all its property and
assets wherever located. A foreign corporation engaged in business in this
state, whether pursuant to a certificate of authority issued pursuant to
chapter 351 or not, shall be subject to this section. Any corporation whose
outstanding shares and surplus as calculated in this subsection does not
exceed two hundred thousand dollars shall state that fact on the annual
report form prescribed by the secretary of state. For all taxable years
beginning on or after January 1, 2000, but ending before December 31, 2009,
the annual franchise tax shall be equal to one-thirtieth of one percent of the
corporation's outstanding shares and surplus if the outstanding shares and
surplus exceed one million dollars. Any corporation whose outstanding shares
and surplus do not exceed one million dollars shall state that fact on the
annual report form prescribed by the director of revenue. For taxable years
beginning on or after January 1, 2010, the annual franchise tax shall be
equal to one-thirtieth of one percent of the corporation's outstanding shares
and surplus if the outstanding shares and surplus exceed ten million dollars,
and any corporation whose outstanding shares and surplus do not exceed ten
million dollars shall state that fact on the annual report form prescribed by
the director of revenue.
2. Sections 147.010 to 147.120 shall not apply to corporations not
organized for profit, nor to corporations organized pursuant to the
provisions of chapter 349, nor to express companies, which now pay an annual
tax on their gross receipts in this state, nor to insurance companies, which
are subject to an annual tax on their premium receipts in this state, nor to
state, district, county, town and farmers' mutual companies now organized or
that may be hereafter organized pursuant to any of the laws of this state,
organized for the sole purpose of writing fire, lightning, windstorm,
tornado, cyclone, hail and plate glass and mutual automobile insurance and
for the purpose of paying any loss incurred by any member by assessment, nor
to any mutual insurance corporation not having shares, nor to a company or
association organized to transact business of life or accident insurance on
the assessment plan for the purpose of mutual protection and benefit to its
members and the payment of stipulated sums of moneys to the family, heirs,
executors, administrators or assigns of the deceased member, nor to foreign
life, fire, accident, surety, liability, steam boiler, tornado, health, or
other kind of insurance company of whatever nature coming within the
provisions of section 147.050 and doing business in this state, nor to
savings and loan associations and domestic and foreign regulated investment
companies as defined by Section 170 of the Act of Congress commonly known as
the Revenue Act of 1942, nor to electric and telephone corporations organized
pursuant to chapter 351 and chapter 392 prior to January 1, 1980, which have
been declared tax-exempt organizations pursuant to Section 501(c) of the
Internal Revenue Code of 1986, nor for taxable years beginning after December
31, 1986, to banking institutions subject to the annual franchise tax imposed
by sections 148.010 to 148.110; but bank deposits shall be considered as
funds of the individual depositor left for safekeeping and shall not be
considered in computing the amount of tax collectible pursuant to the
provisions of sections 147.010 to 147.120.
3. A corporation's taxable year for purposes of sections 147.010 to
147.120 shall be its taxable year as provided in section 143.271.
4. A corporation's transitional year for the purposes of sections 147.010
to 147.120 shall be its taxable year which includes parts of each of the
years 1979 and 1980.
5. The franchise tax payable for a corporation's transitional year shall
be computed by multiplying the amount otherwise due for that year by a
fraction, the numerator of which is the number of months between January 1,
1980, and the end of the taxable year and the denominator of which is twelve.
The franchise tax payable, if a corporation's taxable year is changed as
provided in section 143.271, shall be similarly computed pursuant to
regulations prescribed by the director of revenue.
6. All franchise reports and franchise taxes shall be returned to the
director of revenue. All checks and drafts remitted for payment of franchise
taxes shall be made payable to the director of revenue.
7. Pursuant to section 32.057, the director of revenue shall maintain the
confidentiality of all franchise tax reports returned to the director.
8. The director of the department of revenue shall honor all existing
agreements between taxpayers and the director of the department of revenue.
2000
147.010. 1. For the transitional year defined in subsection 4 of
this section and each taxable year beginning on or after January 1, 1980,
but before January 1, 2000, every corporation organized pursuant to or
subject to chapter 351, RSMo, or pursuant to any other law of this state
shall, in addition to all other fees and taxes now required or paid, pay an
annual franchise tax to the state of Missouri equal to one-twentieth of one
percent of the par value of its outstanding shares and surplus if its
outstanding shares and surplus exceed two hundred thousand dollars, or if
the outstanding shares of such corporation or any part thereof consist of
shares without par value, then, in that event, for the purpose contained in
this section, such shares shall be considered as having a value of five
dollars per share unless the actual value of such shares exceeds five
dollars per share, in which case the tax shall be levied and collected on
the actual value and the surplus if the actual value and the surplus exceed
two hundred thousand dollars. If such corporation employs a part of its
outstanding shares in business in another state or country, then such
corporation shall pay an annual franchise tax equal to one-twentieth of one
percent of its outstanding shares and surplus employed in this state if its
outstanding shares and surplus employed in this state two hundred thousand
dollars, and for the purposes of sections 147.010 to 147.120, such
corporation shall be deemed to have employed in this state that proportion
of its entire outstanding shares and surplus that its property and assets
employed in this state bears to all its property and assets wherever
located. A foreign corporation engaged in business in this state, whether
pursuant to a certificate of authority issued pursuant to chapter 351,
RSMo, or not, shall be subject to this section. Any corporation whose
outstanding shares and surplus as calculated in this subsection does not
exceed two hundred thousand dollars shall state that fact on the annual
report form prescribed by the secretary of state. For all taxable years
beginning on or after January 1, 2000, the annual franchise tax shall be
equal to one-thirtieth of one percent of the corporation's outstanding
shares and surplus if the outstanding shares and surplus exceed one million
dollars. Any corporation whose outstanding shares and surplus do* not
exceed one million dollars shall state that fact on the annual report form
prescribed by the director of revenue.
2. Sections 147.010 to 147.120 shall not apply to corporations not
organized for profit, nor to corporations organized pursuant to the
provisions of chapter 349, RSMo, nor to express companies, which now pay an
annual tax on their gross receipts in this state, nor to insurance
companies, which pay an annual tax on their premium receipts in this state,
nor to state, district, county, town and farmers' mutual companies now
organized or that may be hereafter organized pursuant to any of the laws of
this state, organized for the sole purpose of writing fire, lightning,
windstorm, tornado, cyclone, hail and plate glass and mutual automobile
insurance and for the purpose of paying any loss incurred by any member by
assessment, nor to any mutual insurance corporation not having shares, nor
to a company or association organized to transact business of life or
accident insurance on the assessment plan for the purpose of mutual
protection and benefit to its members and the payment of stipulated sums of
moneys to the family, heirs, executors, administrators or assigns of the
deceased member, nor to foreign life, fire, accident, surety, liability,
steam boiler, tornado, health, or other kind of insurance company of
whatever nature coming within the provisions of section 147.050 and doing
business in this state, nor to savings and loan associations and domestic
and foreign regulated investment companies as defined by Section 170 of the
Act of Congress commonly known as the "Revenue Act of 1942", nor to
electric and telephone corporations organized pursuant to chapter 351,
RSMo, and chapter 392, RSMo, prior to January 1, 1980, which have been
declared tax exempt organizations pursuant to Section 501(c) of the
Internal Revenue Code of 1986, nor for taxable years beginning after
December 31, 1986, to banking institutions subject to the annual franchise
tax imposed by sections 148.010 to 148.110, RSMo; but bank deposits shall
be considered as funds of the individual depositor left for safekeeping and
shall not be considered in computing the amount of tax collectible pursuant
to the provisions of sections 147.010 to 147.120.
3. A corporation's "taxable year" for purposes of sections 147.010 to
147.120** shall be its taxable year as provided in section 143.271, RSMo.
4. A corporation's "transitional year" for the purposes of sections
147.010 to 147.120** shall be its taxable year which includes parts of each
of the years 1979 and 1980.
5. The franchise tax payable for a corporation's transitional year
shall be computed by multiplying the amount otherwise due for that year by
a fraction, the numerator of which is the number of months between January
1, 1980, and the end of the taxable year and the denominator of which is
twelve. The franchise tax payable, if a corporation's taxable year is
changed as provided in section 143.271, RSMo, shall be similarly computed
pursuant to regulations prescribed by the director of revenue.
6. All franchise reports and franchise taxes shall be returned to the
director of revenue. All checks and drafts remitted for payment of
franchise taxes shall be made payable to the director of revenue.
7. Pursuant to section 32.057, RSMo, the director of revenue shall
maintain the confidentiality of all franchise tax reports returned to the
director.
8. The director of the department of revenue shall honor all existing
agreements between taxpayers and the director of the department of revenue.
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