The fiscal problem in Missouri

Bibliographic data

Monograph

Identifikator:: 1833271335

URN:: urn:nbn:de:zbw-retromon-230042

Document type:: Monograph

Title:: The fiscal problem in Missouri

Place of publication:: New York

Publisher:: National Industrial Conference Board, Inc.

Year of publication:: 1930

Scope:: xvi, 359 S.

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter III. The Missouri tax system

Collection:: Economics Books

THE MISSOURI TAX SYSTEM 97 the entrance fee or tax, a foreign corporation is required to pay a fee of $10.00 for a license authorizing it to do business in the state.! An additional fee of $5.00 is required on with- drawal from the state. On the basis of revenue yielded, the corporation franchise tax is one of the most important of the group of special business taxes. The rates and the tax base are the same for domestic and foreign corporations. The base of the tax is the par value of the outstanding capital stock and surplus; no- par stock is considered as having a value of $5.00 per share unless the actual value exceeds that amount, in which case the tax is levied on the actual value and the surplus.? The Supreme Court of Missouri has interpreted surplus to mean “the excess of assets employed in the business over the par value of the outstanding capital stock without regard to liabilities.” The tax under this judicial interpretation be- comes a tax on total assets, when the total assets of a cor- poration are in Missouri. Many corporations subject to the tax have only a part of their assets in the state. In that case the tax base is which- ever is the higher of (1) the clear market value of the assets in Missouri or (2) the par value of the capital stock plus the actual value of no-par stock! multiplied by a fraction, the numerator of which is the clear market value of the assets in Missouri and the denominator of which is the clear market value of the total assets. The latter is particularly applicable in cases where a large number of no-par shares of small actual value are outstanding. As a result of the unusual interpretation given to surplus by the court, it can be said that the tax is not in conflict with the constitutional provisions that require uniformity in raxation. Also, there is no discrimination between corpora- dons with a large proportion of owned capital and those which rely largely on borrowed capital. The rate of the tax is $0.50 per $1,000, or one twentieth of one per cent. A corporation is not subject to the tax for the year in which it incorporates or qualifies. 1 Session Laws, 1927, p. 391. 2 Session Laws, 1929, p. 329. 8 State ex rel. Marquette Hotel Inv. Co. v. State Tax Commission, 282 Mo. 213, 221 8. W. 721. t Not less than $5.00 per share.

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