Section 3 Conformity to Federal Income Tax Laws

• Library: Tax Law 2009

The most significant feature of the 1972 legislation was the adoption of a tax system that “piggybacks” the federal income tax law. The voters of Missouri authorized this approach in 1968 when they approved article X, § 4(d), of the Missouri Constitution, which states that in enacting income tax laws, the legislature “may define income by reference to provisions of the laws of the United States . . . whether retrospective or prospective in their operation.” Under the current Missouri income tax statutes, the Missouri taxable income of a corporation is based on the taxpayer’s federal taxable income, with certain modifications. Before 1972, this was not the case. Instead, under the pre-1972 version of the law, taxpayers calculated Missouri...