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Minnesota Legislature

Office of the Revisor of Statutes

HF 65

as introduced - 90th Legislature (2017 - 2018) Posted on 02/02/2017 03:54pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/05/2017

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4 1.5
1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 2.1 2.2 2.3
2.4 2.5

A bill for an act
relating to taxation; corporate franchise; imposing a surtax on certain corporations
with high principal executive officer to median worker pay ratios; amending
Minnesota Statutes 2016, section 290.06, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin Surtax; publicly held companies with qualifying pay ratios. new text end

new text begin (a) The
provisions of this subdivision apply to each entity that is:
new text end

new text begin (1) subject to tax under this section; and
new text end

new text begin (2) a member of a unitary business, as defined under section 290.17, subdivision 4, if
any member of the unitary business is required to file a pay ratio disclosure under Code of
Federal Regulations, title 17, section 229.402(u), during the taxable year and if that pay
ratio meets the requirements of paragraph (b) or (c).
new text end

new text begin (b) A surtax equal to ten percent of the greater of the entity's liability for tax under
subdivision 1 or section 290.0921 is imposed for the taxable year, if the pay ratio is at least
100:1 but less than 250:1.
new text end

new text begin (c) A surtax equal to 25 percent of the greater of the entity's liability for tax under
subdivision 1 or section 290.0921 is imposed for the taxable year, if the pay ratio is at least
250:1.
new text end

new text begin (d) The tax imposed under this subdivision is in addition to any tax imposed under
subdivision 1, or section 290.0921.
new text end

new text begin (e) For purposes of this subdivision, "pay ratio" means the pay ratio disclosure filed by
the unitary business under Code of Federal Regulations, title 17, section 229.402(u)(1)(iii),
during the taxable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2017.
new text end