Given the negative impact on development that a new tax the Tax Cut and Jobs Act of 2017 placed on contributed utility infrastructure, the staff of the Missouri Public Service Commission is holding a workshop to address the tax, on July 19th, starting at 10 a.m. at Room 450 in the Governor's Office Building, 200 Madison Street, Jefferson City, MO 65102. It is important that all aspects of the development and building industry in Missouri be represented. Developers, builders, contractors, and subcontractors are encouraged to attend.
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The Tax Cut and Jobs Act of 2017 has placed a tax on the utility infrastructure that you either install and contribute to investor owned utilities that serve your developments (known as contributions in aid of construction or CIAC) or the cash you pay to the investor owned utility to install that infrastructure (known as advances). Some utilities, in Missouri, are asking the developer to reimburse the utility for the tax, at the time the contribution of facilities or cash is made.
Every contractor knows that a good foundation and building structure is essential to having a quality building. A poor beginning or lack of maintenance often spells trouble down the road. Among the basics when starting a construction business, an owner should determine what type of entity is best for liability protection purposes and for tax purposes. Basic considerations for liability protection include: both a corporation or a limited liability company (LLC) formed under state law generally limit liability to the value of assets owned by the corporation and avoid personal liability of the owner(s);