HCS HB 1556 -- INVESTMENT FUNDS SERVICE CORPORATIONS

SPONSOR:  Rizzo

COMMITTEE ACTION:  Voted "do pass" by the Committee on Commerce
and Economic Development by a vote of 19 to 0.

This substitute requires the Director of the Department of
Economic Development to determine whether or not an investment
funds service corporation or S corporation not currently
headquartered in Missouri would, if it were to relocate its
principal business headquarters to Missouri, be able to take
advantage of the annual election to determine its taxable income
in one of two ways.  The determination rendered by the director
would be binding if the business did relocate and if the business
still met the requirements.

The substitute has an emergency clause.

FISCAL NOTE:  Income to General Revenue of Unknown in FY 2003, FY
2004, and FY 2005.

PROPONENTS:  Supporters say that a law such as this would make
Missouri very attractive to investment funds service
corporations, because pre-certification allows the Department of
Economic Development to certify an investment funds service
company before it moves to Missouri.  This is good because these
companies don't want to move to Missouri unless they are certain
of their certification status.  This certification allows them to
calculate their income for taxation purposes in one of two ways.

Testifying for the bill were Representative Rizzo; and Waddell
and Reed.

OPPONENTS:  There was no opposition voiced to the committee.

Alice Hurley, Legislative Analyst

Missouri House of Representatives
Last Updated October 11, 2002 at 9:01 am