Missouri businesses could see tax cuts in 2020
JEFFERSON CITY - Businesses in Missouri will see tax cuts in 2020 and some corporations could see more.
Missouri’s new corporate tax rate dropped from 6.25% to 4%; one of the lowest rates in the US.
Former Gov. Eric Greitens, hours before his resignation, signed the give-and-take tax law. It took effect on January 1 for the start of the 2020 tax year.
In the US, only 44 states have an income tax. Although Missouri’s new rate is low, the lowest is North Carolina at 2.5%.
Sara Paben, the owner of a Columbia cafe, said after meeting with her CPA, there are a lot of changes that are being made.
“With sales tax and state tax, small businesses get taxed tremendously. So, it really does help with that because with our CPA this a couple days ago we were looking over things and there are a lot of changes being made so it really accommodates for those changes to be not so drastic,” Paben said.
The Missouri Budget Project, which analyzes financial issues, estimates the tax cut could save 28-million dollars for low income residents.
Individual income tax rates were also cut from 5.9% to 5.4%, which also went into effect January 1.