JEFFERSON CITY, Mo. (AP) -- The Missouri Senate has voted to lower the corporate tax rate from 6.25 percent to 3.5 percent.
The measure, approved Thursday in a 28-3 vote, would lower the corporate tax rate effective Jan. 1.
The bill also would restrict how corporations calculate their taxes, so that taxable income would only be based on a company's sales within the state. Currently, some corporations can consider other factors when calculating their taxes.
Legislative researchers estimate the changes would result in about $10 million annually in new revenue for the state.
The bill's sponsor, Republican Sen. Andrew Koenig of Manchester, said his proposal would improve the state's business climate.
The bill now heads to the House.