SUMMARY OF STATE AND LOCAL INCENTIVES.

Financing:     

Industrial Revenue Bond financing is available for qualifying projects, including Chapter 100 and/or Chapter 349 Industrial Development Corporation bonds.  Revenue bonds provide for significant reductions in interest rates than conventional financing and may eliminate ad valorum real and personal property taxes.

Community Development Block Grant (CDBG) Program through the Missouri Department of Economic Development offers Action Fund loans, public infrastructure grants to assist local governments tied to investment & job growth, and CDBG Loan Guarantee Program for new/expanding businesses.

Tax Increment Financing for specific redevelopment projects designated by the City to re-direct a portion of the increase in sales and real property tax to reduce project costs.

Chapter 353 Redevelopment Corporation statute permits the abatement of real property taxes for qualified redevelopment projects in designated redevelopment areas.  Abatements may extend 25 years for up to 100 % of the total tax liability.

Tax Incentives:

Rolla Enterprise Zone offers property tax abatement. Real property tax abatement is available for 100 % of the increased amount for 10 years!  Contact the Community Development Department for information at (573) 308-4040.

Seed capital fund income or franchise tax credits to qualified investors.

Research tax credits of up to six and one-half percent (6.5%) of qualified research costs. 

Tax Exemptions:

• Property tax exemption on business and industrial inventories.
• Sales/use tax exemption on manufacturing machinery/equipment.
• Sales/use tax exemption on air and water pollution control equipment.
• Sales/use tax exemption on materials and supplies used to install exempted equipment.
• Sales/use tax exemption on electricity consumed in the manufacturing process.
• Sales/use tax exemption on tangible personal property related to research expenses in Life Sciences.
• No City earnings tax, personal property tax, or utility gross receipts tax for water, sewer, or electricity. 
• 50 % federal income tax deduction on Missouri corporate income tax.
• Low property tax rates.

Missouri Customized Job Training Program:  For more information contact:  (573) 368-2211

• Reimbursement of up to 100 % for on-the-job training and classroom instruction with few “strings” on whom the company may hire.
• Assistance in employee recruitment, screening, and testing.
• Financial assistance and tax credits to offset training costs.   
• Easy access to some of Missouri’s best vocational training through the Rolla Technical Institute and the Rolla Technical Center along with East Central Community College, Webster University, Drury University, and others.  Contact Rolla’s Missouri Enterprise (573) 364-8570 for additional support for training and business development.

Facts on Taxes

·        MISSOURI CORPORATE INCOME TAX:

o       Rate is 6.25 % with a net effective rate of 5.2 %.

o       50 % of federal income tax payments are deductible.

o       Only Missouri income is taxed.

o       Missouri income allocated on the lower of:  1) sales, or 2) “three factor” formula based on sales, property, and payroll.

o       No worldwide or nationwide unitary tax assessment.

·        MISSOURI PERSONAL INCOME TAX:

o       Ranges from a low of 1.5 % to a high of $ 315 plus 6 % on taxable income in excess of $ 9,000.

o       Taxable personal income may be reduced by a portion of federal income tax liability.

o       Deductions include allowances for each dependent, personal exemption, and any federal deductions.

·        PROPERTY TAX:

o       The inventories of manufacturers, retailers, distributors and wholesalers are exempt.

o       Rolla’s combined property tax levy per $ 100 assessed valuation for 2003  (includes state, city, county, school, and other taxing entities) was $ 5.3536.  Commercial properties pay an additional .38 surtax.  The City of Rolla does not assess a tax on personal property.

o       Commercial real estate is taxed at 32% of market value.  Personal property is taxed at 33 1/3 % of market value.  Residential real estate (includes single-family and duplex development) pays at a rate of 19 % of market value.

·        SALES TAX:

o       Combined state and local rate is 7.725; state exemptions include: 1) machinery and equipment used in manufacturing; 2) machinery that abates air or water pollution; 3) materials and supplies used to install the above; and 4) electricity consumed in the manufacturing process.

·        UNEMPLOYMENT INSURANCE:

o       General business employers are required to contribute to the unemployment insurance program if

o       they have a total payroll of $ 1,500 or more in a calendar quarter during the current or preceding

o       year, or if they employed a worker for 20 different weeks in the current or preceding year.

o       Missouri has the 35^th lowest unemployment insurance tax burden per worker in the nation. The

o       2000 rate for a new manufacturer was 2.511 % of the first $ 7,500 of each employee’s annual

o       salary.  After two years, employer’s rates are set based on experience.

·        WORKMEN’S COMPENSATION:

o       Missouri has the 26^th lowest worker compensation tax burden in the nation.

o       For all businesses with five or more employees, excluding agricultural and domestic labor, worker’s compensation insurance is required.

o       Coverage can be provided by private carriers or companies may become self-insurers.

o       Benefits based on state’s average weekly wage determined yearly by the Missouri Division of Employment Security.

·        FRANCHISE TAX:

o       Missouri’s franchise tax is a modest 33 cents per $ 1,000 of par value on outstanding shares and surplus or total assets.  Companies with less than $ 1,000,000 in total assets pay no franchise tax.