Effective - 28 Aug 1993
148.097. Taxpayer in other state taxable, when — apportionment of income, manner — property factor, defined — payroll factor, defined — deposits factor, defined. — 1. A taxpayer is taxable in another state if, by reason of business activity in another state, it is subject to and did pay one of the types of taxes specified: a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax. The taxpayer must carry on business activities in another state. If the taxpayer voluntarily files and pays one or more of such taxes when not required to do so by the laws of that state or pays a minimal fee for qualification, organization or for the privilege of doing business in that state, but does not actually engage in business activities in that state, and does not have business facilities in that state or does actually engage in some activity, not sufficient for nexus, and the minimum tax bears no relation to the taxpayer's activities with such state, the taxpayer is not taxable in another state.
2. When the income of a taxpayer is derived from business activity conducted within and without this state and the business activity is taxable in another state, then income shall be apportioned to this state by multiplying the gross income minus the deduction in section 148.040 by a fraction, the numerator of which is the sum of the property factor, the payroll factor, and the deposits factor, and the denominator of which is three reduced by the number of factors which have a denominator of zero.
3. For purposes of subsection 2 of this section, the property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the income year, and the denominator is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the income year, except under this subsection, any property that the bank acquired in settlement of debts and is held for sale under section 362.165 or section 29 Title 12 United States Code. Property owned by the taxpayer shall be valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. The net annual rental rate is the total rental rate paid by the taxpayer, less total annual rental rates received by the taxpayer from subrentals. The average value of property owned by the taxpayer shall be determined by averaging the values at the beginning and ending of the income year, but the director of revenue may require averaging by monthly values if reasonably required to reflect the average value of the taxpayer's property for the income year.
4. For purposes of subsection 2 of this section, the payroll factor is a fraction, the numerator of which is the total amount paid in this state during the income year by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere during the income year by the taxpayer. Compensation is paid in this state if:
(1) The employee's service is performed entirely within this state;
(2) The employee's service is performed both within and without this state, but the service performed without this state is incidental to the employee's service within this state; or
(3) The employee's services are performed both within and without this state, and:
(a) The employee's base of operations is in this state; or
(b) There is no base of operations in any state in which some part of the service is performed, but the place from which the service is directed or controlled is in this state; or
(c) The base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed but the employee's residence is in this state.
5. For purposes of subsection 2 of this section, the deposits factor is a fraction, the numerator of which is the average of deposits recorded on the books at the main banking house and branches of the taxpayer within this state during the income year, and the denominator of which is the average deposits recorded on the books everywhere by the taxpayer during the income year. Such average shall be determined by averaging deposits as of the first of the year with deposits as of the last day of the year.
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(L. 1993 H.B. 105 & 480)
Structure Missouri Revised Statutes
Title X - Taxation and Revenue
Chapter 148 - Taxation of Financial Institutions
Section 148.010 - Title of law.
Section 148.020 - Definitions.
Section 148.030 - Banks subject to tax based on income — rate — credits.
Section 148.031 - Substitute bank franchise tax.
Section 148.040 - Definitions and computation of net and gross income.
Section 148.045 - Computation of deduction, taxpayer files consolidated return.
Section 148.050 - Returns, when filed.
Section 148.062 - Franchise tax, administered how.
Section 148.068 - Tax assessed, when, supplemental assessment.
Section 148.070 - Notice of deficiency, time limitations.
Section 148.072 - Interest, additions to tax, penalties, due when.
Section 148.074 - Overpayment of tax, director may credit against other tax liability, when.
Section 148.076 - Claims for refund, filed when, how — amount, limitations.
Section 148.080 - Taxes returned to counties — two percent to state — director to allocate.
Section 148.085 - Recording and depositing of tax receipts, how.
Section 148.090 - New banks, when taxed — tax, when due.
Section 148.100 - Director to prescribe and publish rules and regulations — access to records.
Section 148.110 - Tax in lieu of other taxes.
Section 148.112 - Distribution of franchise tax credit for bank S corporation shareholders.
Section 148.120 - Title of law.
Section 148.130 - Definition of terms.
Section 148.140 - Credit institutions subject to annual tax — rate — credits.
Section 148.150 - Net income and gross income defined — how computed.
Section 148.160 - Returns, when filed — extension of time — interest.
Section 148.170 - Taxpayer with more than one office, returns of.
Section 148.180 - Tax due, when — credit for overpayment — penalty for nonpayment.
Section 148.190 - Notice to taxpayer of increase of tax — review of director's determination.
Section 148.200 - Director to prescribe necessary rules and regulations — access to records.
Section 148.210 - Credit institution subject to tax for year in which franchise is received.
Section 148.230 - Tax in lieu of certain other taxes.
Section 148.310 - Real and tangible personal property to be assessed and taxed under general laws.
Section 148.320 - Tax on premiums of domestic stock companies — rate — credits.
Section 148.340 - Tax on premiums of foreign companies.
Section 148.360 - County foreign insurance tax money distributed to school districts.
Section 148.370 - Insurance companies, tax on premiums — rate — credit.
Section 148.375 - Delinquent taxes, interest, rate.
Section 148.390 - Deductions allowed on premium receipts.
Section 148.400 - Deductions allowed insurance companies.
Section 148.410 - Director to assess tax where no return made.
Section 148.430 - Director of revenue may sue for taxes when company withdraws or is suspended.
Section 148.440 - Occupation tax in certain cities.
Section 148.450 - Notices, how given.
Section 148.460 - Penalties for violations by agents.
Section 148.540 - Association and members, levy and collection — exclusiveness of tax.
Section 148.541 - Delinquent taxes, interest.
Section 148.610 - Definitions.
Section 148.620 - Annual tax on net income, rate — credits allowed, exceptions.
Section 148.655 - Tax credit allowed for S corporation shareholders of associations, amount.
Section 148.657 - Tax credit allowed for S corporation shareholders of credit institutions, amount.
Section 148.680 - Hearing procedure on disputed amount — appeal.
Section 148.690 - First taxable year, when, how computed.