Amends TCA Title 67, Chapter 4.
This bill enacts the "CEO Pay Disparity Tax Act," which requires the following:<br /> <br /> (1) A pay disparity surcharge must be imposed on each company conducting business in this state whose top executive is paid at least 100 times more than the median income of the company's employees;<br /> <br /> (2) The rate of surcharge must be assessed as an additional one-tenth of one percent, to the standard excise tax rate of six and one-half percent, on the company's net earnings for the next preceding fiscal year for business done in this state during that fiscal year; and<br /> <br /> (3) The department of revenue must promulgate rules to implement (1)-(2).<br /> <br /> This bill applies to tax years beginning on or after July 1, 2023.<br />
This bill enacts the "CEO Pay Disparity Tax Act," which requires the following:<br /> <br /> (1) A pay disparity surcharge must be imposed on each company conducting business in this state whose top executive is paid at least 100 times more than the median income of the company's employees;<br /> <br /> (2) The rate of surcharge must be assessed as an additional one-tenth of one percent, to the standard excise tax rate of six and one-half percent, on the company's net earnings for the next preceding fiscal year for business done in this state during that fiscal year; and<br /> <br /> (3) The department of revenue must promulgate rules to implement (1)-(2).<br /> <br /> This bill applies to tax years beginning on or after July 1, 2023.<br />
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