Missouri Revised Statutes













Chapter 135

Tax Relief

←135.363

Section 135.400.1

135.401→

August 28, 2015

Definitions.

135.400. As used in sections 135.400 to 135.430, the following terms mean:

(1) "Certificate", a tax credit certificate issued by the department of

economic development in accordance with sections 135.400 to 135.430;

(2) "Community bank", either a bank community development corporation

or development bank, which are financial organizations which receive

investments from commercial financial institutions regulated by the federal

reserve, the office of the comptroller of the currency, the office of thrift

supervision, or the Missouri division of finance. Community banks, in

addition to their other privileges, shall be allowed to make loans to

businesses or equity investments in businesses or in real estate provided that

such transactions have associated public benefits;

(3) "Community development corporation", a not-for-profit corporation

whose board of directors is composed of businesses, civic and community

leaders, and whose primary purpose is to encourage and promote the

industrial, economic, entrepreneurial, commercial, and civic development or

redevelopment of a community or area, including the provision of housing and

community development projects that benefit low-income individuals and

communities;

(4) "Department", the Missouri department of economic development;

(5) "Director", the director of the department of economic development,

or a person acting under the supervision of the director;

(6) "Investment", a transaction in which a Missouri small business or a

community bank receives a monetary benefit from an investor pursuant to the

provisions of sections 135.403 to 135.414;

(7) "Investor", an individual, partnership, financial institution,

trust or corporation meeting the eligibility requirements of sections 135.403

to 135.414. In the case of partnerships and nontaxable trusts, the individual

partners or beneficiaries shall be treated as the investors;

(8) "Missouri small business", an independently owned and operated

business as defined in Title 15 U.S.C. Section 632(a) and as described by

Title 13 CFR Part 121, which is headquartered in Missouri and which employs

at least eighty percent of its employees in Missouri, except that no such

small business shall employ more than one hundred employees. Such businesses

must be involved in interstate or intrastate commerce for the purpose of

manufacturing, processing or assembling products, conducting research and

development, or providing services in interstate commerce, but excluding

retail, real estate, insurance or professional services. For the purpose of

qualifying for the tax credit pursuant to sections 135.400 to 135.430,

"Missouri small business" shall include cooperative marketing associations

organized pursuant to chapter 274 which are engaged in the business of

producing and marketing fuels derived from agriculture commodities, without

regard for whether a cooperative marketing association has more than one

hundred employees. Cooperative marketing associations organized pursuant to

chapter 274 shall not be required to comply with the requirements of section

135.414;

(9) "Primary employment", work which pays at least the minimum wage and

which is not seasonal or part-time;



(10) "Principal owners", one or more persons who own an aggregate of

fifty percent or more of the Missouri small business and who are involved in

the operation of the business as a full-time professional activity;



(11) "Project", any commercial or industrial business or other economic

development activity undertaken in a target area, designed to reduce

conditions of blight, unemployment or widespread reliance on public

assistance which creates permanent primary employment opportunities;



(12) "State tax liability", any liability incurred by a taxpayer pursuant

to the provisions of chapter 143, chapter 147, chapter 148, section 375.916,

and chapter 153, exclusive of the provisions relating to the withholding of

tax as provided for in sections 143.191 to 143.265 and related provisions;



(13) "Target area", a group of blocks or a self-defined neighborhood

where the rate of poverty in the area is greater than twice the national

poverty rate and as defined by the department of social services in

conjunction with the department of economic development. Areas of the state

satisfying the criteria of this subdivision may be designated as a "target

area" following appropriate findings made and certified by the departments of

economic development and social services. In making such findings, the

departments of economic development and social services may use any commonly

recognized records and statistical indices published or made available by any

agency or instrumentality of the federal or state government. No area of the

state shall be a target area until so certified by the department of social

services and the revitalization plan submitted pursuant to section 208.335

has received approval.



(L. 1992 S.B. 661 & 620 § 8, A.L. 1994 H.B. 1547 & 961, A.L. 1995 H.B.

414, S.B. 445, A.L. 1996 H.B. 1237, A.L. 1997 2d Ex. Sess. S.B.

1, A.L. 1998 S.B. 827, A.L. 2003 H.B. 289)



CROSS REFERENCE:



Annual report for tax credits, 320.092





1998



1998



135.400. As used in sections 348.330 to 348.351, the

following words and terms mean:



(1) "At risk", the repayment of an investment is

entirely dependent upon the success of the business

operations;



(2) "Certificate", a tax credit certificate issued by

the department of economic development in accordance with

sections 348.330 to 348.351;



(3) "Department", the Missouri department of economic

development;



(4) "Director", the director of the department of

economic development, or a person acting under the

supervision of the director;



(5) "Investment", a transaction in which a Missouri

small business receives a monetary benefit from an investor

under the provisions of sections 348.332 to 348.341;



(6) "Investor", an individual, partnership, trust or

corporation meeting the eligibility requirements of sections

348.332 to 348.341. In the case of partnerships and

nontaxable trusts, the individual partners or beneficiaries

shall be treated as the investors;



(7) "Missouri small business", an independently owned

and operated business as defined in Title 15 USC section

632(a) and as described by Title 13 C.F.R. Part 121, which

is headquartered in Missouri and which employs at least

eighty percent of its employees in Missouri, except that no

such small business shall employ more than one hundred

employees. Such businesses must be involved in interstate

or intrastate commerce for the purpose of manufacturing,

processing or assembling products, conducting research and

development, or providing services in interstate commerce,

but excluding retail, real estate, insurance or professional

services;



(8) "Principal owners", one or more persons who own an

aggregate of fifty percent or more of the Missouri small

business and who are involved in the operation of the

business as a full-time professional activity;



(9) "State tax liability", any liability incurred by a

taxpayer under the provisions of chapters 143, 147 and 153,

RSMo, exclusive of the provisions relating to the

withholding of tax as provided for in sections 143.191 to

143.265, RSMo, and related provisions.



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