Tax & Accounting Blog

MISSOURI CONSIDERS REPLACING INCOME TAX REVENUE WITH SALES TAX

Indirect Tax, ONESOURCE, Sales and Use Tax October 16, 2012

The Missouri Jobs and Prosperity Act aims at replacing corporate franchise taxes, bank franchise taxes, and state income tax with a sales tax increase. The individual income tax will be phased out and corporate income tax, corporation franchise and bank franchise taxes will be terminated immediately.  State sales and use tax would replace these lost revenues by increasing the state sales tax rate to 7.0% on retail sales of new tangible personal property and taxable services. Adding to an already complex system of sales tax calculation and consideration, Missouri proposes to modify the state sales tax on tangible personal property and taxable services to 4.0% starting in 2015. This is a decrease from the current rate of 4.225%,  but is intended to gradually increase over the following 4 years. If the state goes through with this sales tax rate increase to 7.0%, some counties could be paying over 10.0% in sales taxes on all taxable transactions.

Read More: http://kalon-women.com/blog/644/mo-considering-replacing-income-tax-with-increased-sales-tax/