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
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
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.