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:
Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision
to read:
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(a) The
provisions of this subdivision apply to each entity that is:
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(1) subject to tax under this section; and
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(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).
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(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.
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(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.
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(d) The tax imposed under this subdivision is in addition to any tax imposed under
subdivision 1, or section 290.0921.
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(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.
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This section is effective for taxable years beginning after December
31, 2017.
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