PURPOSE: This rule establishes guidelines concerning allowable tax credits on the bank franchise tax return pursuant to section 148.030.3., RSMo.

1. (1) The following criteria shall be used to establish whether or not a tax credit may be claimed against the bank franchise tax, imposed by sections 148.010–148.110, RSMo, computed pursuant to section 148.030.3., RSMo:

   1. (A) The payment must have been made to Missouri or a Missouri political subdivision;
   2. (B) Payment must have resulted from a tax liability imposed by a government agency, as defined in subsection (1)(A) and cannot be a regulatory fee collected solely for the purpose of paying the cost of administering the taxing jurisdiction’s laws; and

   3. (C) The following should be used as a general guideline to determine if an exaction, required by subsection (1)(A), is an allowable tax credit or a noncreditable fee:

      1. 1. If the proceeds, paid as defined in subsection (1)(A), are

collected for deposit into the general revenue account of the taxing jurisdiction, to raise revenue for the entity, then it is a tax and is an allowable tax credit; or

1. 2. If the proceeds, paid as defined in subsection (1)(A), are

collected primarily to cover the costs of the regulation of an activity, and which are then deposited with the regulatory agency, then it is a noncreditable fee.

1. (2) At all times the burden of establishing whether an exaction is an allowable tax credit or a noncreditable fee shall be on the taxpayer.

AUTHORITY: section 148.100, RSMo 1986.* Original rule filed March 2, 1987, effective May 28, 1987.

*Original authority: 148.100, RSMo 1945.