JEFFERSON CITY, Mo. (AP) - Gov. Jay Nixon has signed legislation to gradually repeal a tax on some Missouri businesses.
The bill reduces Missouri's franchise tax rate over the next several years before repealing it altogether for the 2016 tax year. Nixon signed the measure Tuesday in Kansas City at Boulevard Brewing Co. He said repealing the measure will provide an incentive for companies to move to Missouri.
The state's franchise tax was levied in 1917 and applies to company assets such as buildings and inventory.
Business groups have made the elimination of the tax one of their top priorities.
The Missouri Budget Project, which analyzes state policies for their effect on the poor, criticized repealing the tax, saying it was an important source of revenue when the state is strapped for cash.