135.276. As used in sections 135.276 to 135.283, the following termsmean:
(1) "Continuation of commercial operations" shall be deemed to occurduring the first taxable year following the taxable year during which thebusiness entered into an agreement with the department pursuant to section135.283 in order to receive the tax exemption, tax credits and refundablecredits authorized by sections 135.276 to 135.283;
(2) "Department", the department of economic development;
(3) "Director", the director of the department of economicdevelopment;
(4) "Enterprise zone", an enterprise zone created under section135.210 that includes all or part of a home rule city with more thantwenty-six thousand but less than twenty-seven thousand inhabitants locatedin any county with a charter form of government and with more than onemillion inhabitants;
(5) "Facility", any building used as a revenue-producing enterpriselocated within an enterprise zone, including the land on which the facilityis located and all machinery, equipment, and other real and depreciabletangible personal property acquired for use at and located at or withinsuch facility and used in connection with the operation of such facility;
(6) "NAICS", the industrial classification as such classificationsare defined in the 1997 edition of the North American IndustrialClassification System Manual as prepared by the Executive Office of thePresident, Office of Management and Budget;
(7) "Retained business facility", a facility in an enterprise zoneoperated by the taxpayer which satisfies the following requirements asdetermined by the department and included in an agreement with thedepartment:
(a) The taxpayer agrees to a capital investment project at thefacility of at least five hundred million dollars to take place over aperiod of two consecutive taxable years ending no later than the fifthtaxable year after continuation of commercial operations;
(b) The taxpayer has maintained at least two thousand employees peryear at the facility for each of the five taxable years preceding the yearof continuation of commercial operations;
(c) The taxpayer agrees to maintain at least the level of employmentthat it had at the facility in the taxable year immediately preceding theyear of continuation of commercial operations for ten consecutive taxableyears beginning with the year of the continuation of commercial operations.Temporary layoffs necessary to implement the capital investment projectwill not be considered a violation of this requirement;
(d) The taxpayer agrees that the amount of the average wage paid bythe taxpayer at the facility will exceed the average wage paid within thecounty in which the facility is located for ten consecutive taxable yearsbeginning with the year of the continuation of commercial operations;
(e) Significant local incentives with respect to the project orretained facility have been committed, which incentives may consist of:
a. Cash or in-kind incentives derived from any nonstate source,including incentives provided by the affected political subdivisions,private industry and/or local chambers of commerce or similar suchorganizations; or
b. Relief from local taxes;
(f) Receipt of the tax exemption, tax credits, and refunds are majorfactors in the taxpayer's decision to retain its operations at the facilityin Missouri and go forward with the capital investment project and notreceiving the exemption, credits, and refunds will result in the taxpayermoving its operations out of Missouri; and
(g) There is at least one other state that the taxpayer verifies isbeing considered as the site to which the facility's operations will berelocated;
(8) "Retained business facility employee", a person employed by thetaxpayer in the operation of a retained business facility during thetaxable year for which the credit allowed by section 135.279 is claimed,except that truck drivers and rail and barge vehicle operators shall notconstitute retained business facility employees. A person shall be deemedto be so employed if such person performs duties in connection with theoperation of the retained business facility on a regular, full-time basis.The number of retained business facility employees during any taxable yearshall be determined by dividing by twelve the sum of the number ofindividuals employed on the last business day of each month of such taxableyear. If the retained business facility is in operation for less than theentire taxable year, the number of retained business facility employeesshall be determined by dividing the sum of the number of individualsemployed on the last business day of each full calendar month during theportion of such taxable year during which the retained business facilitywas in operation by the number of full calendar months during such period;
(9) "Retained business facility income", the Missouri taxable income,as defined in chapter 143, RSMo, derived by the taxpayer from the operationof the retained business facility. If a taxpayer has income derived fromthe operation of a retained business facility as well as from otheractivities conducted within this state, the Missouri taxable income derivedby the taxpayer from the operation of the retained business facility shallbe determined by multiplying the taxpayer's Missouri taxable income,computed in accordance with chapter 143, RSMo, by a fraction, the numeratorof which is the property factor, as defined in paragraph (a) of thissubdivision, plus the payroll factor, as defined in paragraph (b) of thissubdivision, and the denominator of which is two:
(a) The "property factor" is a fraction, the numerator of which isthe retained business facility investment certified for the tax period, andthe denominator of which is the average value of all the taxpayer's realand depreciable tangible personal property owned or rented and used in thisstate during the tax period. The average value of all such property shallbe determined as provided in chapter 32, RSMo;
(b) The "payroll factor" is a fraction, the numerator of which is thetotal amount paid during the tax period by the taxpayer for compensation topersons qualifying as retained business facility employees at the retainedbusiness facility, and the denominator of which is the total amount paid inthis state during the tax period by the taxpayer for compensation. Thecompensation paid in this state shall be determined as provided in chapter32, RSMo;
(10) "Retained business facility investment", the value of real anddepreciable tangible personal property, acquired by the taxpayer as part ofthe retained business facility after the date of continuation of commercialoperations, which is used by the taxpayer in the operation of the retainedbusiness facility, during the taxable year for which the credit allowed bysection 135.279 is claimed, except that trucks, truck-trailers, trucksemitrailers, rail vehicles, barge vehicles, aircraft and other rollingstock for hire, track, switches, barges, bridges, tunnels, rail yards, andspurs shall not constitute retained business facility investments. Thetotal value of such property during such taxable year shall be:
(a) Its original cost if owned by the taxpayer; or
(b) Eight times the net annual rental rate, if leased by thetaxpayer. The net annual rental rate shall be the annual rental rate paidby the taxpayer less any annual rental rate received by the taxpayer fromsubrentals. The retained business facility investment shall be determinedby dividing by twelve the sum of the total value of such property on thelast business day of each calendar month of the taxable year. If theretained business facility is in operation for less than an entire taxableyear, the retained business facility investment shall be determined bydividing the sum of the total value of such property on the last businessday of each full calendar month during the portion of such taxable yearduring which the retained business facility was in operation by the numberof full calendar months during such period;
(11) "Revenue-producing enterprise", manufacturing activitiesclassified as NAICS 336211.
135.276. As used in sections 135.276 to 135.283, the following termsmean:
(1) "Continuation of commercial operations" shall be deemed to occurduring the first taxable year following the taxable year during which thebusiness entered into an agreement with the department pursuant to section135.283 in order to receive the tax exemption, tax credits and refundablecredits authorized by sections 135.276 to 135.283;
(2) "Department", the department of economic development;
(3) "Director", the director of the department of economicdevelopment;
(4) "Enterprise zone", an enterprise zone created under section135.210 that includes all or part of a home rule city with more thantwenty-six thousand but less than twenty-seven thousand inhabitants locatedin any county with a charter form of government and with more than onemillion inhabitants;
(5) "Facility", any building used as a revenue-producing enterpriselocated within an enterprise zone, including the land on which the facilityis located and all machinery, equipment, and other real and depreciabletangible personal property acquired for use at and located at or withinsuch facility and used in connection with the operation of such facility;
(6) "NAICS", the industrial classification as such classificationsare defined in the 1997 edition of the North American IndustrialClassification System Manual as prepared by the Executive Office of thePresident, Office of Management and Budget;
(7) "Retained business facility", a facility in an enterprise zoneoperated by the taxpayer which satisfies the following requirements asdetermined by the department and included in an agreement with thedepartment:
(a) The taxpayer agrees to a capital investment project at thefacility of at least five hundred million dollars to take place over aperiod of two consecutive taxable years ending no later than the fifthtaxable year after continuation of commercial operations;
(b) The taxpayer has maintained at least two thousand employees peryear at the facility for each of the five taxable years preceding the yearof continuation of commercial operations;
(c) The taxpayer agrees to maintain at least the level of employmentthat it had at the facility in the taxable year immediately preceding theyear of continuation of commercial operations for ten consecutive taxableyears beginning with the year of the continuation of commercial operations.Temporary layoffs necessary to implement the capital investment projectwill not be considered a violation of this requirement;
(d) The taxpayer agrees that the amount of the average wage paid bythe taxpayer at the facility will exceed the average wage paid within thecounty in which the facility is located for ten consecutive taxable yearsbeginning with the year of the continuation of commercial operations;
(e) Significant local incentives with respect to the project orretained facility have been committed, which incentives may consist of:
a. Cash or in-kind incentives derived from any nonstate source,including incentives provided by the affected political subdivisions,private industry and/or local chambers of commerce or similar suchorganizations; or
b. Relief from local taxes;
(f) Receipt of the tax exemption, tax credits, and refunds are majorfactors in the taxpayer's decision to retain its operations at the facilityin Missouri and go forward with the capital investment project and notreceiving the exemption, credits, and refunds will result in the taxpayermoving its operations out of Missouri; and
(g) There is at least one other state that the taxpayer verifies isbeing considered as the site to which the facility's operations will berelocated;
(8) "Retained business facility employee", a person employed by thetaxpayer in the operation of a retained business facility during thetaxable year for which the credit allowed by section 135.279 is claimed,except that truck drivers and rail and barge vehicle operators shall notconstitute retained business facility employees. A person shall be deemedto be so employed if such person performs duties in connection with theoperation of the retained business facility on a regular, full-time basis.The number of retained business facility employees during any taxable yearshall be determined by dividing by twelve the sum of the number ofindividuals employed on the last business day of each month of such taxableyear. If the retained business facility is in operation for less than theentire taxable year, the number of retained business facility employeesshall be determined by dividing the sum of the number of individualsemployed on the last business day of each full calendar month during theportion of such taxable year during which the retained business facilitywas in operation by the number of full calendar months during such period;
(9) "Retained business facility income", the Missouri taxable income,as defined in chapter 143, RSMo, derived by the taxpayer from the operationof the retained business facility. If a taxpayer has income derived fromthe operation of a retained business facility as well as from otheractivities conducted within this state, the Missouri taxable income derivedby the taxpayer from the operation of the retained business facility shallbe determined by multiplying the taxpayer's Missouri taxable income,computed in accordance with chapter 143, RSMo, by a fraction, the numeratorof which is the property factor, as defined in paragraph (a) of thissubdivision, plus the payroll factor, as defined in paragraph (b) of thissubdivision, and the denominator of which is two:
(a) The "property factor" is a fraction, the numerator of which isthe retained business facility investment certified for the tax period, andthe denominator of which is the average value of all the taxpayer's realand depreciable tangible personal property owned or rented and used in thisstate during the tax period. The average value of all such property shallbe determined as provided in chapter 32, RSMo;
(b) The "payroll factor" is a fraction, the numerator of which is thetotal amount paid during the tax period by the taxpayer for compensation topersons qualifying as retained business facility employees at the retainedbusiness facility, and the denominator of which is the total amount paid inthis state during the tax period by the taxpayer for compensation. Thecompensation paid in this state shall be determined as provided in chapter32, RSMo;
(10) "Retained business facility investment", the value of real anddepreciable tangible personal property, acquired by the taxpayer as part ofthe retained business facility after the date of continuation of commercialoperations, which is used by the taxpayer in the operation of the retainedbusiness facility, during the taxable year for which the credit allowed bysection 135.279 is claimed, except that trucks, truck-trailers, trucksemitrailers, rail vehicles, barge vehicles, aircraft and other rollingstock for hire, track, switches, barges, bridges, tunnels, rail yards, andspurs shall not constitute retained business facility investments. Thetotal value of such property during such taxable year shall be:
(a) Its original cost if owned by the taxpayer; or
(b) Eight times the net annual rental rate, if leased by thetaxpayer. The net annual rental rate shall be the annual rental rate paidby the taxpayer less any annual rental rate received by the taxpayer fromsubrentals. The retained business facility investment shall be determinedby dividing by twelve the sum of the total value of such property on thelast business day of each calendar month of the taxable year. If theretained business facility is in operation for less than an entire taxableyear, the retained business facility investment shall be determined bydividing the sum of the total value of such property on the last businessday of each full calendar month during the portion of such taxable yearduring which the retained business facility was in operation by the numberof full calendar months during such period;
(11) "Revenue-producing enterprise", manufacturing activitiesclassified as NAICS 336211.
135.276. As used in sections 135.276 to 135.283, the following termsmean:
(1) "Continuation of commercial operations" shall be deemed to occurduring the first taxable year following the taxable year during which thebusiness entered into an agreement with the department pursuant to section135.283 in order to receive the tax exemption, tax credits and refundablecredits authorized by sections 135.276 to 135.283;
(2) "Department", the department of economic development;
(3) "Director", the director of the department of economicdevelopment;
(4) "Enterprise zone", an enterprise zone created under section135.210 that includes all or part of a home rule city with more thantwenty-six thousand but less than twenty-seven thousand inhabitants locatedin any county with a charter form of government and with more than onemillion inhabitants;
(5) "Facility", any building used as a revenue-producing enterpriselocated within an enterprise zone, including the land on which the facilityis located and all machinery, equipment, and other real and depreciabletangible personal property acquired for use at and located at or withinsuch facility and used in connection with the operation of such facility;
(6) "NAICS", the industrial classification as such classificationsare defined in the 1997 edition of the North American IndustrialClassification System Manual as prepared by the Executive Office of thePresident, Office of Management and Budget;
(7) "Retained business facility", a facility in an enterprise zoneoperated by the taxpayer which satisfies the following requirements asdetermined by the department and included in an agreement with thedepartment:
(a) The taxpayer agrees to a capital investment project at thefacility of at least five hundred million dollars to take place over aperiod of two consecutive taxable years ending no later than the fifthtaxable year after continuation of commercial operations;
(b) The taxpayer has maintained at least two thousand employees peryear at the facility for each of the five taxable years preceding the yearof continuation of commercial operations;
(c) The taxpayer agrees to maintain at least the level of employmentthat it had at the facility in the taxable year immediately preceding theyear of continuation of commercial operations for ten consecutive taxableyears beginning with the year of the continuation of commercial operations.Temporary layoffs necessary to implement the capital investment projectwill not be considered a violation of this requirement;
(d) The taxpayer agrees that the amount of the average wage paid bythe taxpayer at the facility will exceed the average wage paid within thecounty in which the facility is located for ten consecutive taxable yearsbeginning with the year of the continuation of commercial operations;
(e) Significant local incentives with respect to the project orretained facility have been committed, which incentives may consist of:
a. Cash or in-kind incentives derived from any nonstate source,including incentives provided by the affected political subdivisions,private industry and/or local chambers of commerce or similar suchorganizations; or
b. Relief from local taxes;
(f) Receipt of the tax exemption, tax credits, and refunds are majorfactors in the taxpayer's decision to retain its operations at the facilityin Missouri and go forward with the capital investment project and notreceiving the exemption, credits, and refunds will result in the taxpayermoving its operations out of Missouri; and
(g) There is at least one other state that the taxpayer verifies isbeing considered as the site to which the facility's operations will berelocated;
(8) "Retained business facility employee", a person employed by thetaxpayer in the operation of a retained business facility during thetaxable year for which the credit allowed by section 135.279 is claimed,except that truck drivers and rail and barge vehicle operators shall notconstitute retained business facility employees. A person shall be deemedto be so employed if such person performs duties in connection with theoperation of the retained business facility on a regular, full-time basis.The number of retained business facility employees during any taxable yearshall be determined by dividing by twelve the sum of the number ofindividuals employed on the last business day of each month of such taxableyear. If the retained business facility is in operation for less than theentire taxable year, the number of retained business facility employeesshall be determined by dividing the sum of the number of individualsemployed on the last business day of each full calendar month during theportion of such taxable year during which the retained business facilitywas in operation by the number of full calendar months during such period;
(9) "Retained business facility income", the Missouri taxable income,as defined in chapter 143, RSMo, derived by the taxpayer from the operationof the retained business facility. If a taxpayer has income derived fromthe operation of a retained business facility as well as from otheractivities conducted within this state, the Missouri taxable income derivedby the taxpayer from the operation of the retained business facility shallbe determined by multiplying the taxpayer's Missouri taxable income,computed in accordance with chapter 143, RSMo, by a fraction, the numeratorof which is the property factor, as defined in paragraph (a) of thissubdivision, plus the payroll factor, as defined in paragraph (b) of thissubdivision, and the denominator of which is two:
(a) The "property factor" is a fraction, the numerator of which isthe retained business facility investment certified for the tax period, andthe denominator of which is the average value of all the taxpayer's realand depreciable tangible personal property owned or rented and used in thisstate during the tax period. The average value of all such property shallbe determined as provided in chapter 32, RSMo;
(b) The "payroll factor" is a fraction, the numerator of which is thetotal amount paid during the tax period by the taxpayer for compensation topersons qualifying as retained business facility employees at the retainedbusiness facility, and the denominator of which is the total amount paid inthis state during the tax period by the taxpayer for compensation. Thecompensation paid in this state shall be determined as provided in chapter32, RSMo;
(10) "Retained business facility investment", the value of real anddepreciable tangible personal property, acquired by the taxpayer as part ofthe retained business facility after the date of continuation of commercialoperations, which is used by the taxpayer in the operation of the retainedbusiness facility, during the taxable year for which the credit allowed bysection 135.279 is claimed, except that trucks, truck-trailers, trucksemitrailers, rail vehicles, barge vehicles, aircraft and other rollingstock for hire, track, switches, barges, bridges, tunnels, rail yards, andspurs shall not constitute retained business facility investments. Thetotal value of such property during such taxable year shall be:
(a) Its original cost if owned by the taxpayer; or
(b) Eight times the net annual rental rate, if leased by thetaxpayer. The net annual rental rate shall be the annual rental rate paidby the taxpayer less any annual rental rate received by the taxpayer fromsubrentals. The retained business facility investment shall be determinedby dividing by twelve the sum of the total value of such property on thelast business day of each calendar month of the taxable year. If theretained business facility is in operation for less than an entire taxableyear, the retained business facility investment shall be determined bydividing the sum of the total value of such property on the last businessday of each full calendar month during the portion of such taxable yearduring which the retained business facility was in operation by the numberof full calendar months during such period;
(11) "Revenue-producing enterprise", manufacturing activitiesclassified as NAICS 336211.
