Opinion ID: 2192493
Heading Depth: 1
Heading Rank: 4

Heading: inclusion of rental and interest income

Text: In its first assertion of error, the director argues the AHC erred by allowing Taxpayers to include income from rentals and interest earned by the Fredericktown market in calculating enterprise zone benefits. The AHC determined that since the Fredericktown market used the single-factor method of apportionment via section 143.451, RSMo 1994, no distinction can be made between business and non-business income of the corporation. The method of apportionment used by the corporation is irrelevant to the calculation of EZM and EZC in section 135.220 discussed in Part II above. It is not the business or non-business nature of the income that determines whether the income may be included for purposes of calculating EZM and EZC. In accordance with section 135.220, RSMo Supp.1992, one must compute the amount of income that originates from the new business facility in the enterprise zone by a statutory method. To the extent the S-corporation properly includes rental and interest income in its Missouri taxable income, it is included in calculating EZM and EZC.