HF 65

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

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:

Subd. 1b.

Surtax; publicly held companies with qualifying pay ratios.

(a) The
provisions of this subdivision apply to each entity that is:

(1) subject to tax under this section; and

(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).

(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.

(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.

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

(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.

EFFECTIVE DATE.

This section is effective for taxable years beginning after December
31, 2017.