PURPOSE: This rule sets out the policy of the Office of the Secretary of State regarding corporations excepted from the franchise tax under Chapter 147, RSMo.

1. (1) The following types of corporations are excepted from franchise tax and should so indicate in their corporation annual report to the secretary of state:

   1. (A) Corporations with capital stock and surplus not in excess of two hundred thousand dollars ($200,000);

   2. (B) Corporations not organized or operated for profit. In order for a corporation to be considered not organized for profit, it must be—

      1. 1. Incorporated under Chapter 355 or

352, RSMo, or, if a foreign corporation, operating under a certificate of authority issued under Chapter 355, RSMo; and

1. 2. Operated not for the profit of any

individual. See, Citizen’s Electric Corp. v. Director of Revenue, 766 SW2d 450 (Mo. banc 1989). The fact that a corporation is organized under the laws of a state or country which does not have a statute similar to Chapter 355, RSMo, shall not prevent it from qualifying for this exception;

1. (C) Express Companies. An express company is a common carrier governed by the provisions of sections 390.180–390.240, RSMo (1978) (repealed);
2. (D) Insurance companies which now pay an annual tax on premium receipts in this state. See, Chapter 148, RSMo (1994).
3. (E) Telephone or electric companies organized before 1980 under Chapter 351, RSMo that are exempt from federal taxation under section 501(c)(3) of the Internal Revenue Code; and
4. (F) Banking institutions subject to the banking institutions franchise tax. See, Chapter 148, RSMo.

AUTHORITY: section 147.120.9, RSMo Supp. 1995.* This rule previously filed as 15 CSR 30-150.130. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.160, effective Jan. 1, 2000. *Original authority: 147.120.9, RSMo 1939, amended 1943, 1945, 1969, 1979, 1982, 1983, 1987, 1992, 1995.