Lawmakers Move Toward Abolishing Franchise Tax on Missouri Businesses - KAIT Jonesboro, AR - Region 8 News, weather, sports

Lawmakers Move Toward Abolishing Franchise Tax on Missouri Businesses

April 22, 2006 - Posted at 12:47 p.m. CST

JEFFERSON CITY, Mo. (AP) _ Missouri lawmakers are moving to

abolish an 89-year-old tax that some think has outlived its

usefulness.

It's the franchise tax, levied on a corporation's assets,

inventory and property in the state.

The franchise tax was enacted in 1917, before Missouri had

corporate and individual income taxes. Lawmakers began reducing the

levy just two years later.

Critics say the tax amounts to a forced payment for the right to

open a business in Missouri. Last year, it generated 120

million dollars in revenue -- out of total collections of

12-point-three billion dollars.

Now, a bill awaiting final House approval would lower the tax

rate still further and ultimately repeal the levy in 2011.

(Copyright 2006 by The Associated Press. All Rights Reserved.)

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