2008 cost of living index in Benton County: 78.8 (classified as low, U.S. average is 100)
Benton County offers the unique combination of a qualified workforce, available properties, and low business costs. Contact Irv Jensen of Benton County Development Corporation to find out how your project would apply to our state and local tax advantages and incentives.
State taxes: The State of Missouri is rated the 16th lowest in state/local business taxes by the Tax Foundation. The state corporate income tax rate is 5.2% (net effective since federal tax is deductable), and the personal income tax is graduated up to a maximum of 6%; however, the average rate is 2.7% of gross wages. Other state taxes include corporation franchise, and other specific business type of taxes.
Exempt Business Taxes: In Missouri, the following business taxes are exempt:
Local property taxes on inventories.
State and local sales tax on manufacturer’s machinery and equipment.
State sales tax on energy costs.
Local Property Tax Abatement: There are several different methods that we may be able to provide property tax abatement for a new/expanding business project, including:
“The Benton County Enhanced Enterprise Zone“, which provides automatic abatement of a portion of the new real property taxes, plus, for qualified projects approved by the state, tax credits based on a formula for new payroll and new capital investment.
Chapter 100 Program: Industrial revenue bonds may be issued by a city or county for certain types of projects. The city/county may own the assets and lease them to the company, and therefore the assets become exempt from real and personal property taxes for the term of the bonds. The city/county would typically require a certain amount of payment in lieu of tax, which is negotiable. The bonds must either be purchased by the company or sold on the basis of the company’s credit, and are not guaranteed by the city/county issuer.
Chapter 353 Urban Redevelopment Corporation: A city may authorize the formation of a entity formed by a company/developer for a specific area, which must be declared “blighted” and approved for a redevelopment plan. The area then may have the increase in real property taxes due to the project abated for a period approved by the city.
Tax Increment Financing: A city or county may approve a redevelopment plan for a blighted area, which would include the redirect of new real property taxes and local sales taxes for up to a 23 year period.
Other Local Development Programs:
Neighborhood Improvement Districts: (67.453 to 67.475) Allows “special assessments” to be paid on property within a defined area, which would be used to pay general obligation bonds issued by a city or county to finance a public infrastructure project.
Community Improvement Districts: (67.140-67.1571) Allows the creation of a special public entity in a defined area, which can impose a sales tax and/or special assessments to fund a variety of improvements, maintenance, marketing, and other costs which benefits the district.
Transportation Development Districts: (238.200 to 238.275) Allows the imposition of a sales tax within a defined area to fund bonds issued for transportation purposes (roads, bridges, other).
State Incentives - New or Expanding “Primary” Businesses: Some incentives for new or expanding “primary” businesses (manufacturing, distribution, office, research and development, services in interstate commerce, and others that do not compete locally) include:
Quality Jobs Program: This “entitlement” program provides benefits based on a formula of the amount of payroll generated by net new jobs created by an eligible company at a new or expanding facility. The first type of benefit is the company would retain the state withholding taxes created by the new jobs, and any remaining benefit would be provided in the form of refundable tax credits.
Enhanced Enterprise Zone tax credits. Automatic abatement of a portion of the new real property taxes, plus, for qualified projects approved by the state, tax credits based on a formula for new payroll and new capital investment.
State Programs - Small Businesses Financing and Technical Assistance:
Missouri Business Portal (Resources).
Small Business Development Centers. (Counseling, training, resources, other).
Action Fund Loan: This is a discretionary loan for a ”primary” business in need of additional funding to complete a project. The loan is limited to the LOWER of either (a) 750,000 per project; 40% of the total project cost; or $25,000 per new job created. The loan is subordinated to a bank’s loan for the project.
Rebuilding Communities Tax Credit: For eligible businesses located in “distressed areas“, this program may provide state tax credits based on 25-40% of new equipment or computers, plus other benefits.
State Programs - Public Infrastructure Development to Facilitate Business Projects:
Industrial Infrastructure Grant: A grant provided to a city or county to fund public improvements needed to facilitate a “primary” business project.
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