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Tax Incentives
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Business and Personal Taxes |
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Corporate Income Tax |
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6.25% of Missouri taxable income |
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50% of federal income tax liability can be deducted before
computing taxable income |
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Effective tax rate of only 5.2% |
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Personal Income Tax |
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Ranges from a low of 1.5% to a high of $315 plus 6% on
taxable income in excess of $9,000 |
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Taxable income may be reduced by a portion of federal
income tax liability |
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Deductions include allowances for each dependent, personal
exemption, and federal deductions |
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Employer Withholding Tax |
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Missouri Employer Tax Identification Number required |
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State tax is withheld from employee's payroll and remitted
to the MO Department of Revenue |
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Contact: Tax Administration Bureau, PO Box 999, Jefferson
City, MO 65108-0999 Phone: 573-751-5752 |
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State and Local Sales Tax |
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State sales tax rate of 4.225% |
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City sales tax rate of 2.75% |
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County sales tax rate of 1.0% |
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Total sales tax rate of 7.975% |
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Lower than rate in 35 other states |
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Use Tax |
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Imposed when tangible personal property is stored, used or
consumed in Missouri |
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18 major exemptions from sales/use taxes |
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State Property Tax |
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Personal Property assessed at 1/3 (or 33%) of true value
throughout the state |
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Assessment of Real Properties (Land & Buildings):
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Commercial & Industrial properties are assessed at 32% of
fair market value |
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Residential properties are assessed at 19% of fair market
value |
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Agricultural properties are assessed at 12% of fair market
value |
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Local Property Tax |
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Local Property Tax is an aggregate of school, city,
county, and state levies |
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Expressed in tax per $100 assessed value |
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Real Property Abatement |
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Chapter 353 Urban Redevelopment Corp. Law provides that up
to 100% of improvements to real property may be exempt from state and
local property taxes for up to 25 years |
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Enterprise Zones may also abate improvements to real
property up to 100% for up to 25 years |
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Inventories Exempt |
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Manufacturers' inventories and goods and wares of
retailers, distributors and wholesalers are exempt from property taxes |
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Corporate Franchise Tax |
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Based on capital employed in a company |
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Rate is 1/30th of 1% of total assets in excess of $1
million |
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Unemployment Insurance |
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2006 rates are based on the first $11,000 of each
employee's annual salary |
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Rates range from 0% to 6.0%,
not including surcharge |
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Normal entry rate for new companies with no experience
rating is 3.51% for 2 years |
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Opportunity to reach 0% employer contribution rate after
only 6 years of favorable experience |
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Worker's Compensation |
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Provided through private insurance carrier or company can
become self-insurers |
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Premium rates vary depending
on risks associated with special occupations |
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Premium rates apply to an employee's total annual salary |
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Maximum weekly benefit is computed as 105% of the average
weekly wage, determined annually on July 1st |
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MO benefits cannot be increased without the review and
approval of the state legislature |
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For Additional Information on Business and Personal Taxes
in Missouri, Please Visit the Missouri Department of Revenue Web Site at
www.dor.mo.gov |
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Local Property Tax Rates per $100 Assessed Value
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State law sets the assessment ratio for Personal Property at
1/3 of true value |
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Real Properties (land and buildings) classified as Commercial
and Industrial are assessed at 32%; Residential at 19%; and Agricultural at
12% of true or fair market value |
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Local Property Tax is an aggregate of School, City, County,
and State levies expressed in tax per $100 assessed valuation |
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Commercial and Industrial Properties are assessed a county
surcharge of $ 0.369 per $100 assessed value to replace revenues lost by the
tax exemption of business inventories |
Property Tax Rates
Per $100 Assessed Value |
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CAPE GIRARDEAU, MO |
JACKSON, MO |
SCOTT CITY, MO |
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City Tax |
$ 0.65 |
City Tax |
$ 0.96 |
City Tax |
$ 1.27 |
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County Tax |
$ 0.56 |
County Tax |
$ 0.56 |
County Tax |
$ 0.93 |
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State Tax |
$ 0.03 |
State Tax |
$ 0.03 |
State Tax |
$ 0.03 |
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Cape Girardeau Public Schools Tax |
$ 3.99 |
Jackson Public Schools Tax |
$ 3.31 |
Scott City R-1 Schools Tax |
$ 3.21 |
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Total Tax Rate |
$ 5.23 |
Total Tax Rate |
$ 4.86 |
Total Tax Rate |
$ 5.44 |
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Tax
Incentives
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State Tax Credits for the creation of new jobs |
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State Tax Credits for the generation of new investment |
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State Tax Credits for Enterprise Zone location |
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Low corporate income tax rate of 6.25% (Net effective tax rate
of 5.2%) |
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50% of federal income tax payments can be deducted before
computing state income tax |
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Choice of single-factor or three-factor methods of
apportionment |
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Property tax exemptions of manufacturers' inventories |
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Several major exemptions from sales/use taxes including
manufacturing machinery & equipment, pollution control equipment, and energy
consumed in the manufacturing process |
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Low personal income tax rate ranging from 1.5% to $315 + 6%
over $9,000 of taxable income earned |
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Cape Girardeau Enterprise Zone Benefits
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Property Tax Abatement: At least 50% of real property
taxes must be abated for at least 10 years. If 50 or more jobs are created, up
to 100% of real property taxes may be abated for up to 25 years.
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New Jobs Credit: 10 year income tax credit of $400 per job
created |
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New Investment Credit: 10 year income tax credit of 10% on
first $10,000 investment, 5% on next $90,000, and 2% of excess over $100,000.
Requires 30% of new employees to be zone residents or "special" employees |
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Income Exemption: 50% of Missouri taxable income
attributed to new portion of facility is exempt from Missouri income tax for
10 years |
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Resident Credit: 10 year income tax credit of $400 per
year for each employee who lives in the enterprise zone |
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Special Employee Credit: 10 year income tax credit of $400
per year for each employee who at time hired is considered difficult to employ |
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Training Credit: Up to $400 for each employee who is
trained with company funds and who is a resident of the zone and who at the
time hired is considered difficult to employ |
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Refund of Unused Tax Credits: Up to $75,000 refund for
unused tax credits earned by a NEW facility. |
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Missouri Customized Job Training Program
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Tailor-made training programs specially designed for
businesses |
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Involves on-the-job training and/or skill training in a
classroom setting |
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Financial assistance and tax credits offset training costs |
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State and federal funds can reimburse up to 100% of training
costs |
Local Education & Job Training Resources
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Southeast Missouri State University |
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School of Polytechnic Studies @ Southeast Missouri State
University |
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Cape Girardeau Career and Technology Center |
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Mineral Area College |
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Workforce Investment Board of Southeast Missouri |
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For more information about Tax Incentives
available
in Missouri's Cape Girardeau Area,
please contact us.
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Jackson