October 15, 2013

Missouri Department of Revenue Issues Guidance on New Apportionment Method

Missouri taxpayers with business activity in multiple states now have guidance for the new optional Single Sales Factor Apportionment Method.  This method is a result of the passage of HB 128 by the general assembly that was signed by the Governor on July 12, 2013.  The law took effect on August 28, 2013.  The Department of Revenue is taking the position that the law is effective prospectively and applies to any return filed on or after the effective date.  The new method is not available for any return filed prior to August 28, 2013 and is also not available for amended returns since once an apportionment election is made on an originally filed return it cannot be changed.

The Department of Revenue has issued revised forms and instructions which are available on its website at http://dor.mo.gov/forms/index.php?category=4.  The new optional apportionment method may result in significant tax savings for Missouri taxpayers that have sales outside Missouri.  The new method results in Missouri taxpayers paying income tax on only their Missouri source sales.  The Anders Manufacturing and Distribution Group is prepared to assist taxpayers determine the most advantageous apportionment method to minimize their state tax burden.  For more information please contact us.

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