JEFFERSON CITY, Mo. (AP) - Missouri businesses would eventually no longer pay a state tax on their assets under legislation approved by the state House.
The legislation would reduce Missouri's franchise tax rate starting in 2012 and eliminate it in the 2016 tax year. That tax is levied on corporate assets, such as inventory and buildings.
House members voted 106-52 on Thursday to approve the measure. It now goes to the state Senate.
Supporters say repealing the franchise tax would boost economic development and help Missouri to compete with other states for jobs. Critics have questioned how the state would offset the lost revenue.
Missouri has gradually reduced the franchise tax rate. In 2009, the Legislature exempted firms with less than $10 million in assets from the tax.
Franchise tax is HB76