Nixon plans to sign corporate franchise tax repeal

Gov. Jay Nixon on Tuesday plans to sign into law a repeal of the corporate franchise tax.

Nixon plans to sign the legislation at 10:30 a.m. at Boulevard Brewing Co. in Kansas City.

Senate Bill 19, sponsored by Sen. Eric Schmitt, R-Glendale, gradually phases out the state’s corporate franchise tax. Despite the word “franchise” being in the name, the corporate franchise tax is not based on whether a corporation is a franchise. Instead, the franchise tax is a tax based on the amount of assets that a business has located in Missouri. Nixon said phasing out the franchise tax will provide an incentive for companies to locate additional assets in Missouri, opening the door for future growth and job creation.

[St. Louis Business Journal]