Missouri - New optional single-sales factor apportionment election 

October 10:  Taxpayers facing the approaching tax return due date of October 15 need to consider certain key aspects of Missouri’s new optional single-sales factor apportionment election.

Taxpayers making the election on 2012 returns filed on or after August 28, 2013, also need to be aware of certain issues.


Missouri H.B. 128 [PDF 124 KB], as signed into law by the governor on July 12, 2103, includes certain property tax changes and also authorizes the use of a more traditional single-sales factor methodology to determine Missouri taxable income, basing the apportionment on total sales from transactions within Missouri divided by total sales elsewhere.

The new election was enacted without guidance on two critical aspects:

  • The date when taxpayers may first use the new formula
  • How receipts derived from sales other than sales of tangible personal property are to be sourced

Read an October 2013 report [PDF 94 KB], prepared by KPMG LLP, that discusses these issues in greater detail.

For more information, contact a KPMG State and Local Tax professional:

Guy Creveling

(816) 802-5291

Dan White

(202) 533-3096

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