Gov. Jay Nixon on Tuesday signed into law a repeal of the corporate franchise tax.

Nixon signed the legislation at Boulevard Brewing Co. in Kansas City.

Senate Bill 19, sponsored by Sen. Eric Schmitt, R-Glendale, gradually phases out the state’s corporate franchise tax until it is completely gone 2016. Despite the word “franchise” being in the name, the corporate franchise tax is not based on whether a corporation is a franchise. Instead, the franchise tax is a tax based on the amount of assets that a business has located in Missouri. The current franchise tax rate is one-thirtieth of 1 percent of a company’s taxable assets.

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