PURPOSE: This rule establishes a procedure for filing the bank franchise tax return as required under section 148.030, RSMo.

1. (1) For taxable years beginning after December 31, 1986, the bank franchise tax provided for in section 148.030, RSMo shall equal the sum of the following:

   1. (A) An amount equal to one-twentieth (1/20) of one percent (1%) of the par value of the taxpayer’s outstanding shares and surplus employed in the state, as computed under section 147.010, RSMo; and
   2. (B) Seven percent (7%) of the taxpayer’s net income for the preceding year, less the amount computed in subsection (1)(A) and less all taxes paid to Missouri and its political subdivisions during the relevant income period, as outlined in section 148.030.3., RSMo, including state and local sales and use taxes paid to sellers, vendors or Missouri, with respect to purchases of tangible personal property and the services enumerated in Chapter 144, RSMo. The net amount computed in this subsection cannot be less than zero (0).
2. (2) The taxpayer shall file a single bank tax return by April 15 of the taxable year.

3. (3) The amounts computed in section (1) shall be reported on the following forms:

   1. (A) The computation in subsection (1)(A) shall be reported on Schedule BF and attached to the bank tax return; and
   2. (B) The computation in subsection (1)(B) shall be reported on the bank tax return (DOR-INT-2).
4. (4) Example:
5. (A) $100,000 (Value of shares and surplus)×1/20 of 1% =$ 50.00
6. (B) Net Income =$1,000,000.00×7% =$70,000.00 Less BF Tax $ -50.00 Less Other Credits $ -100.00 $69,850.00
7. (A) + (B) =Net Tax Due Per INT-2 $69,900.00

AUTHORITY: section 148.100, RSMo 1986.* Original rule filed March 2, 1987, effective May 28, 1987. Amended: Filed Feb. 16, 1988, effective May 26, 1988. *Original authority: 148.100 RSMo 1945.