Missouri FlagCuba, Missouri offers a business friendly tax environment. Further, CNBC Business News ranked The State of Missouri’s business costs as the 4th Lowest of any state in 2009.   During the last three decades, one key factor in keeping the cost of doing business in Missouri low has been our ability to ensure that our state and local tax burden is as small as possible.

According to the Missouri Partnership, in 2009, the Small Business and Entrepreneurship Council ranked Missouri as having the 14th-best state tax system in the nation. And with a rate estimated at 9.2% of income today — well below the national average of 9.7% — Missouri’s low tax burden continues to be a key factor in helping Missouri businesses grow.

Missouri Corporate Income Tax
Missouri’s Corporate Income Tax rate ranked 5th in the nation according to the Tax Foundation’s State Business Tax Climate Index Rankings for 2010.

Missouri’s corporate income tax rate of 6.25% is applied to Missouri taxable income. In Missouri, this is the same as federal taxable income. Missouri allows 50% of federal income tax payments to be deducted before computing taxable income, leading to an effective tax rate of 5.2%.

A franchise tax also applies to Missouri corporations. That tax is 0.033% of the value of the proportion of the par value of shares or surplus greater than $1 million in Missouri.

A new corporation must pay an incorporation fee of $50 for the first $30,000 or less of shares and $5 for each additional $10,000 or portion thereof. A foreign corporation pays $150 for certification. Annual corporate registration fees must also be paid by domestic and foreign corporations doing business in Missouri. The rate is $40 annually for registration with the Secretary of State’s Office. (Source: Missouri Department of Revenue)

Missouri Sales and Use Taxes 
Sales Tax: The state’s sales tax (4.225%) is imposed on the purchase price of tangible personal property or taxable service sold at retail.

Use Tax: The state’s use tax is also 4.225 percent, and it is imposed on the use, storage or consumption of tangible personal property shipped into Missouri from out of state. (Source: Missouri Department of Revenue)

Missouri Taxable Income
An important tax advantage for Missouri businesses is the amount of income considered taxable: only income earned in Missouri is taxed.

Two allocation options are offered for calculating this income:

  1.  the three-factor formula, based on sales, property and payroll or
  2.  the single-factor formula, based only on sales.

Missouri is the only state that permits companies to choose the income allocation formula that results in the lesser corporate income tax liability. This means that companies are not penalized for locating property and jobs in Missouri as they are in the other states. In addition, it is important to note that Missouri has not adopted worldwide or nationwide unitary tax assessment in computing multinational corporate income tax liability. (Source: Missouri Department of Economic Development)

City and County Tax Structure

  • Cuba, Missouri DOES NOT Collect Real Property Taxes
  • Cuba, Missouri DOES NOT Collect Personal Property Taxes
  • Crawford County Real Property Taxes = $4.54 per $100 on 32% of Total Real Property Value
  • Crawford County Personal Property Taxes = $4.18 per $100 on 33% of Total Personal Property Value
  • Cuba, Missouri Sales Tax Currently 4.25% (8.475% Combined Sales Tax w/ Missouri