Corporation Franchise Tax

(Chapter 147, RSMO) Franchise tax is a tax that corporations pay in advance for doing business within the state.  It is not a tax on franchisees.  Franchise tax is based on the “par value of the corporation’s outstanding shares and surplus”.  This is defined as the “total assets or the par value of issued and outstanding capital stock, whichever is greater”.  For capital stock with no par value, the value is $5.00 per share or actual value, whichever is higher. The franchise tax basis (Schedule MO-FT, Line 6) is the basis of the assets as of the first day of the taxable year.  For taxable years beginning on or after January 1, 2000, all domestic and foreign corporations under Chapter 351 or engaged in business must file the franchise tax return. However, only those corporations whose assets exceed one million dollars in or apportioned to Missouri are liable to pay the tax.  The due date of the franchise tax return is the 15th day of the fourth month from the beginning of the taxable period.  The franchise tax rate is 1/30 of 1% (.000333). 

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