Tax Rates

Sales Tax

Combined state and local rate is 7.55% (a higher sales tax rate may apply within transportation development districts); State exemptions include:

Machinery and equipment used in a manufacturing facility;
Machinery that abates air or water pollution;
Materials and supplies used to install the above; and,
Electricity consumed in the manufacturing process

City

Gross Receipts

The City of Columbia, like most Missouri cities, levies a 7.5268% gross receipts tax on utility services within the City of Columbia.

County

Property Tax

The inventories of manufacturers, retailers, distributors and wholesalers are exempt from property tax.
Columbia's 2006 total real property tax rate is $6.5265 per $100 assessed valuation.
Real property (land & building) classified as commercial or industrial is assessed at 32% of fair market value.
Personal property taxes imposed on a taxpayer is determined by two factors:
- The assessed value of their taxable property -- 33.3% of the true market value.
- The tax rate set by the governing bodies of local governments where the property is located.
The amount of taxes levied is determined by the tax rate for every $100 of assessed value.
Residential property tax is assessed at 19% of fair or true market value.

Commercial Property Tax Rate

State

Missouri Corporate Income Tax

Rate is 6.25% with a net effective rate of 5.2%. 50% of federal income tax payments are deductible. Only Missouri income is taxed. Missouri income allocated on the lower of 1) sales, or 2) "three factor" formula based on sales, property and payroll. No worldwide or nationwide unitary tax assessment.

Missouri Franchise Tax

1/30 of 1%, or $0.33 per $1000 of par value of outstanding shares or total assets

Unemployment Insurance

The taxable wage limitations for 2006 and 2007 are based on the first $11,000 of each employee's annual salary. In 2008 the taxable wage limitation rises to $12,000 and to $12,500 in 2009. After 2009 the taxable wage base could be increased by $1,000 or decreased by $500 for any year depending on the balance in the Unemployment Compensation Fund. In no event shall the taxable wage base increase beyond $13,000 or decrease to less than $7,000. For more information, contact the Missouri Division of Employment Security at (573) 751-3215.

Workers Compensation

Companies can offer this protection through a private insurance carrier or they can become self-insurers. Premium rates vary, depending on the risks associated with special occupations. As in most states, the premium rates apply to an employee's total annual salary. The maximum weekly benefit for temporary total disability, temporary partial disability, permanent total disability and death is currently computed as 105% of the average weekly wage, determined annually on July 1. Missouri's workers' compensation rates compare favorably with those in other states. Though benefits for claimants in other states usually increase automatically from year to year, in Missouri benefits cannot be increased without the review and approval of the state legislature.